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.

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