T3/T5 reporting problems
- Norbert Schlenker
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T3/T5 reporting problems
Probably needs its own thread because slips are starting to arrive. Why should this year be any better as far as errors go?
BMOIL T5 problem
I own BAM.PR.N. BAM pays dividends on its preferreds on the last day of the quarter, so there was a dividend payable on December 31, 2011, a Saturday. BMOIL credited the dividend on January 3, 2012, the next business day. Legally, I think that's a 2011 dividend. BMOIL hasn't included it on their T5. (Why did I notice? Because I reconcile against my own portfolio management reports of taxable income.)
I have an inquiry in to BMOIL. We'll see if it changes and, if so, how late. Good thing I don't file tax returns until April 30.
BMOIL T5 problem
I own BAM.PR.N. BAM pays dividends on its preferreds on the last day of the quarter, so there was a dividend payable on December 31, 2011, a Saturday. BMOIL credited the dividend on January 3, 2012, the next business day. Legally, I think that's a 2011 dividend. BMOIL hasn't included it on their T5. (Why did I notice? Because I reconcile against my own portfolio management reports of taxable income.)
I have an inquiry in to BMOIL. We'll see if it changes and, if so, how late. Good thing I don't file tax returns until April 30.
Nothing can protect people who want to buy the Brooklyn Bridge.
Re: T3/T5 reporting problems
IB always did the same thing as well with my iShares stuff. Then I saw someone on here mention that the day you get the money is the day you pay tax. FWIW I always file using whatever numbers that get reported to the CRA.
newguy
add: I'm not sure I can find the post I was thinking of but I found this.
http://www.financialwisdomforum.org/for ... 45#p377445
newguy
add: I'm not sure I can find the post I was thinking of but I found this.
http://www.financialwisdomforum.org/for ... 45#p377445
Arby wrote:(Just to confuse things, CRA treats Dividend income differently than other forms of income. Dividend income is taxed in the year it is received.)
Last edited by Peculiar_Investor on 07 Feb 2014 07:04, edited 2 times in total.
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- Bylo Selhi
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Re: T3/T5 reporting problems
General comment: Even if the T-slip is wrong and the institution won't/can't revise it in time, you can still file your return with what you consider to be the correct numbers. If you paper-file then include an explanatory note with supporting documentation. If you net-file then send them the same note by snail-mail. I've done the latter on several occasions and never heard further from CRA.
I'm not aware of any mechanism to add explanatory notes to e-filed returns, either in the tax preparation software or on CRA's MyAccount site. If those options exist, please post details below.
I'm not aware of any mechanism to add explanatory notes to e-filed returns, either in the tax preparation software or on CRA's MyAccount site. If those options exist, please post details below.
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Re: T3/T5 reporting problems
Nope, the record date is the taxation date. Doesn't matter when you get the money.newguy wrote:IB always did the same thing as well with my iShares stuff. Then I saw someone on here mention that the day you get the money is the day you pay tax..........
here.I'm not sure I can find the post
ltr
Re: T3/T5 reporting problems
Yeah that's it. And again it was Arbylike_to_retire wrote:Nope, the record date is the taxation date. Doesn't matter when you get the money.newguy wrote:IB always did the same thing as well with my iShares stuff. Then I saw someone on here mention that the day you get the money is the day you pay tax..........
here.I'm not sure I can find the post
ltr
newguyArby wrote:It depends on the characteristic of the distribution. If the distributions are in the form of interest or other income, they are taxed in the year they are earned, (which is the year of the Record Date). If the distributions are in the form of dividends, they are taxed in the year they are actually received, (which is the year of the Payment Date).
Re: T3/T5 reporting problems
Exception? -the year of death when dividends declared but not paid (not sure how this could be arranged -possible loophole? can anyone explain?) and bond coupons not cashed can go on a "rights and things return".newguy wrote:Yeah that's it. And again it was Arbylike_to_retire wrote:Nope, the record date is the taxation date. Doesn't matter when you get the money.newguy wrote:IB always did the same thing as well with my iShares stuff. Then I saw someone on here mention that the day you get the money is the day you pay tax..........
here.I'm not sure I can find the post
ltr
newguyArby wrote:It depends on the characteristic of the distribution. If the distributions are in the form of interest or other income, they are taxed in the year they are earned, (which is the year of the Record Date). If the distributions are in the form of dividends, they are taxed in the year they are actually received, (which is the year of the Payment Date).
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- Bylo Selhi
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Re: T3/T5 reporting problems
Unless the amount of payment is substantial, e.g. enough to bump up the tax bracket in 2012, I'm having trouble imagining why CRA would object if the taxpayer reported a dividend in 2011 that they could have deferred to 2012.
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Re: T3/T5 reporting problems
I don't keep track of what money I should have received on the date of record, so I pay my taxes according to my T slips. iShares will throw me off this year, so I'll calculate my taxes both ways and see if it makes a difference. If it does, I'll report to CRA based on the date of record, but now I'll have to look up the date of record for the other stocks I hold and see if I need to include other income too. grrr
Re: T3/T5 reporting problems
I simply include what the T3/T5 tells me it is. I think CRA prefers that the numbers match. Why make some civil servant tear his/her hair off reconciling differences?
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- Norbert Schlenker
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Re: T3/T5 reporting problems
Reading comprehension not their strong suit.
Followup sent.BMOIL wrote:Thank you for contacting BMO InvestorLine using MyLink. My name is P*** C**** and I appreciate the opportunity to respond.
The preferred dividend is paid on December 31 and the Record date was on December 15. As such , it would be included in 2011 income only and not 2012.
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- Norbert Schlenker
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Re: T3/T5 reporting problems
With regret I must report that BMOIL has now sent me two followup emails assuring me that the dividends belong in 2011 but with no assurance that the T5 will be corrected. The second email suggested that new T5s would be issued for split share companies, the implication being that Brookfield is somehow one of these.
Nothing can protect people who want to buy the Brooklyn Bridge.
- Norbert Schlenker
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Re: T3/T5 reporting problems
Input: BMOIL now tells me the dividend belongs in 2012. The company tells me it belongs in 2012. The transfer agent tells me it belongs in 2011.
Output: I'm using the T5 as printed.
Oy.
Output: I'm using the T5 as printed.
Oy.
Nothing can protect people who want to buy the Brooklyn Bridge.