T5008 Exchange Rate Cap Gain?

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fangle
Posts: 19
Joined: Tue Feb 18, 2014 1:00 pm

T5008 Exchange Rate Cap Gain?

Post by fangle »

This may not be cross-border enough, but I would appreciate advice and a heads up with there are cross border implications.
Working on my 2018 Canadian return (dual us/can, resident of Canada). Not an investor nor educated about adjusted cost case. Lower income.

I had one non-registered investment acquired at the recommendation of a Can advisor (I know nothing) who knew I had received some US funds after moving back to Canada. The investment was a US power company debenture. I bought for US $10,000 in 2012 and the company? redeemed it in 2018, about a year earlier than the due date for US $10,000. I received and reported small annual T5 income from this investment. There were no commissions. Nothing reinvested. The cash will stay in US funds for foreseeable future.

I'm trying to figure out how to adjust the 2018 T5008 (blank Box 20 and Box 21 is in US dollars) or alternatively complete Schedule 3 for my Canadian return, if that's what I should do. It's my first T5008 and the learning curve . . .

Am I reporting a cap gain just from the change in the exchange rate of my original investment of US 10K from 2012 to 2018 and nothing else? Do I adjust T5008 Box 20 to the CAN value of US10K at the time of purchase (near par) and the Box 21 to the CAN value of US10K at the time of redemption in 2018 (~$13K CAN)?

If yes, is there anything else I need to do--is there an adjusted cost base I need to calculate now OR do I need to maintain records for these funds in the future, if i reinvest it?

Thanks all. I think I may be saying goodbye to my small refund . . .
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