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Tax reporting tips

on Thu, 03/27/2014 - 20:22
*Updated 4/5/2017
 
At this point, everybody is busy gathering all their T-slips for tax filing.
 
As mentioned before in this post before, other than waiting for your company to give you your T-slips, you can log into your Service Canada and see if you find anything there.
 
After all these years, I found most people are still not too sure what they are expecting to receive for their tax. I had received quite some inquiries from clients regarding their T-slips.
 
RRSP
- There are NO T-slips on RRSP accounts, do not expect any tax documents on RRSP accounts unless you make changes
- If you did RRSP contribution last year and/or within the first 60 days of the year, you should expect RRSP contribution receipts
- If you withdrew money from RRSP, you should receive T4-RSP
- If you withdrew money from RRSP under HBP or LLP, no T4-RSP will be generated
 
TFSA
- There are no contribution receipts nor T-slips from TFSAs, do not expect any slips or recepts... 
 
Non-registered investments/cash accounts
- You receive T slips on all your non-registered accounts no matter you have done any selling or in-kind transfers (except in a corporate class structured mutual funds - until the Liberal government announced to close that in the 2016 budget), because gains or losses are being triggered when the fund managers do their job rebalancing your portfolio. Do note that you might still receive those slips as long as the investments generated those even if your investment value had gone down by the end of the year.
  • GICs - you should expect T5s even though your GIC has a term longer than 1 year; you are supposed to report the interest income generated in the year of 2013, even though you might not received the actual amount in cash under compounded interest options.
  • Mutual funds, stocks and other investments - you should expect T5s and T3s based on what kind of income your investments had generated last year.
  • If you had sold any of these investments (or did in-kind transfer), a capital gain/loss could have been created, not all companies will send you that information automatically, so make sure you ask for it.
Remember to claim:
- capital loss/gain (as described)
  you do not get capital loss claims under TFSAs or RRSPs 
- interest cost or carrying cost
  1. If you opened any loans to invest into non-registered investments (or even you had the investments first and you borrowed money without selling your investments), the amount of interest cost on the investment amount borrowed can be deducted.
  2. If you opened any investment account which charge you administration fees, all those fees are tax deductible.
  3. If you get charged by investment companies on early redemptions, those are also tax deductible.

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