It’s that time of the year where you may start to receive tax slips related to investments you held in 2016. Some slips you may be used to receiving, but some you may not have received before. Here’s a quick description of some of the more common slips we receive and what you’ll need to do with them.
If you held mutual funds in a non-registered account, and the mutual funds paid a distribution in 2016, you’ll receive a T3 slip (or a Releve 16 in Quebec). This slip will tell you how much income (either interest, dividend or capital gains) you’ll need to report on your tax return for the mutual fund listed on the slip.
You may also receive a T5 slip, or a Releve 3 in Quebec. This is similar to a T3, but it tells you how much income you received during the year from mutual fund corporations (as opposed to mutual fund trusts), or from any stock dividends you received. You’ll need to report these amounts on your return also.
It’s important to note that if you held a non-registered account and received a mutual fund distribution – or dividends from a stock – you will receive a tax slip, even if that income was reinvested and not paid to you in cash.
Finally, if you sold any securities such as stocks or bonds in 2016, you will receive a T5008 slip. This will report any taxable gains or losses you realized when you sold those investments.
Before you file your tax return this year, make sure you’ve received all the slips that have been issued to you. You might also be receiving some that I haven’t mentioned above – if you’re currently living outside of Canada, for example. At the end of the day, if you’re not sure which slips you should be expecting, feel free to get in touch with me and I’ll help point you in the right direction.