When Filing Your Return, Remember Your Securities Transactions
Your securities transactions (for example, the sale of shares, bonds or mutual funds) must be taken into account in your return.
To report your securities transactions, use the information on the RL-18 slip, the statement of account, the transaction record, the federal T5008 slip or any other relevant document you received from the financial institution or securities dealer. Make sure that the information (for example, the proceeds of disposition, the cost or book value, or the face value) is correct, and keep the documents in case we ask for them.
Note that we receive an RL-18 slip for every securities transaction.
To complete your return, you must determine, for each transaction, whether the disposition or redemption of the security resulted in a capital gain (or loss), in business income (or loss) or in investment income. You must calculate the amount of a capital gain (or loss) using the adjusted cost base (ACB).
If you sold units in a mutual fund trust, include returns of capital you received in the year or a previous year (included in box M of the RL-16 slip) when you calculate the ACB.
Once you have determined the nature of the amounts, enter them in your personal income tax return (form TP-1-V) as follows:
- complete Schedule G, in the case of a capital gain (or loss)
- complete Schedule L, in the case of business income (or loss)
- enter the amount on line 130 of the return, in the case of investment income
Corporations, trusts and partnerships
Enter the amounts in the Déclaration de revenus des sociétés (form CO-17), the Trust Income Tax Return (form TP-646-V) or the Partnership Information Return (form TP-600-V), as applicable.
If you have already filed your personal income tax return and want to make changes to it, file a Request for an Adjustment to an Income Tax Return (form TP-1.R-V). In the case of a corporation or trust, file a Demande de redressement d'une déclaration de revenus ou d'une déclaration de revenus et de renseignements (form CO-17.R) or a Request for an Adjustment to a Trust Income Tax Return (form TP-646.R-V), as applicable. In the case of a partnership, simply file another copy of form TP-600-V.
If you have failed to report securities transactions in the past, you can rectify your situation under our voluntary disclosure policy.
You should know that we monitor securities transactions. In light of that fact, we are providing the above information to better help you meet your tax obligations. For more information on reporting securities transactions, refer to the guide to the personal income tax return (TP-1.G-V) or the guide entitled Capital Gains and Losses (IN-120-V).