Regulation 230 - Security Transactions

Subsection 230(2)

Administrative Policy

RC4268 Handbook on Securities Transactions, A Summary of the Reporting Requirements Under the Income Tax Regulations

FX

Complete all T5008 slips in Canadian currency. Use the exchange rate that was in effect at the time of the transaction or an average rate that includes the transaction period. ...

Proceeds

Proceeds...means the fair market value, and includes all consideration, such as cash, debt obligations, and shares, that is paid or payable to the transferor.

Isssuers

Issuers of securities can include •partnerships; ...•municipal or public bodies...; and •foreign governments

Reg. 230(5) example

[A] coin dealer who buys gold coins, that are not numismatic coins, from an individual has to report the purchase to the individual on a T5008 slip.

Deemed dispositions

You do not have to report deemed dispositions on a T5008 slip.

Forms

T5008 "Statement of Securities Transactions"

T5008SUM "Return of Securities Transactions"

T4091 "T5008 Guide - Return of Securities Transactions"

Box 19 - Face amount...Leave this box blank if the security does not have a face amount (for example, shares or commodities).

Box 20 - Cost or book value... .The preparer is expected to take reasonable measures in order to ensure that the amount reported in box 20 is correct.

Box 21 - Proceeds... .Do not deduct any expenses from the proceeds

Boxes 22-24 Report in box 21 any part of the proceeds that is credited in money. ...Use boxes [22-24]...to report the transaction only if you cannot reasonably determine the FMV of the securities obtained on conversion. ...[Where you] redeem...a bond for 20 ounces of gold [and]...you could not determine the value of the gold, you would complete boxes 22, 23, and 24 as follows: •Box 22 - MET •Box 23 - 20 OZ •Box 24 - GOLD.

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