Return of Investment Income (T5)
What's new
Inclusion rate for capital gains from the disposition of capital property
Budget 2024 announced an increase in the capital gains inclusion rate from 1/2 to 2/3 for capital gains from dispositions of capital property after June 24, 2024.
Under proposed changes, capital gains from dispositions of property before June 25, 2024 should be reported separately from capital gains from dispositions of property after June 24, 2024.
For more information about capital gains, see Guide T4037, Capital Gains.
Revised – T5 slip
For this year only, box 34, "Capital gains dividends" Period 1 - before June 25, 2024 was added and the description of box 18, "Capital gains dividends" Period 2 - after June 24, 2024 was revised.
Report box 34 "Capital gains dividends" in the "Other information" section of the T5 slip.
Breakdown of Capital Gains Dividends
You should include in box 34, any capital gains dividends from dispositions of property realized before June 25, 2024. Include in box 18, any capital gains dividends from dispositions of property realized after June 24, 2024.
An election is available to prorate the total amount of capital gains dividends from dispositions of property between Period 1 and Period 2. You can do this by dividing the number of days in each period by the total number of days in the tax year.
In this case, report in the applicable box the amount calculated as follows:
Number of days in the period
______________________________ x Capital gains dividends for the tax year
Number of days in the tax year
Fillable Forms
You can now complete your T5 forms online and print them. To find T5 forms, go to canada.ca/cra-forms-publications.
Internet file transfer availability
Internet filing will be available from January 13, 2025.
In these pages, the term "filer" refers to the person (that is, an individual or organization) that, under the Income Tax Act, must prepare and file a T5 information return. A filer is different from a service bureau or anyone else who may be filing the return for a filer.
Filers must use their account number instead of their business number or filer identification number.
Topics
- T5 information return
Due date, filing methods, penalties, and interest. - T5 slip
Having to file or not, completing, distributing, and correcting the T5 slip. - T5 Summary
Completing and filing the summary. - Accrued interest
Investment contracts, indexed debt obligations, and more. - Blended payments
What is a blended payment and how to report it. - Deemed dividends
What amounts are considered deemed dividends and how do you calculate them. - Unclaimed amounts: Dividends or interest
Remittances, interest and penalties, reporting requirements, and instructions. - Payments to non-residents of Canada
Reporting requirements, remittances, interest, penalties, and more. - Are you acting as a trustee?
Forms and publications
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