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Oct 15, 2006
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Edmonton

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7 replies
Member
Jan 18, 2014
209 posts
14 upvotes
covergirl wrote: Hi,

I have bought a 1-year non-redeemable GIC last July. When I fill my tax return next month, Should I include the interests gain in 2013 although not yet received in my bank account (I will receive the full amount next July)?
I think you are to put in your income tax return what the bank sends you in the T3s and T5s. From my understanding, in general if your GIC makes any interest that needs to be entered in your income tax, the bank first needs to record that interest in the form of a T3 or a T5 - I don't remember 100% which one, and if I remember correctly there is also some minimum interest of 50 dollars (if less than that the bank won't send). That is how I enter the interests if any from my GICs.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Yes. If it equates to more than $50 you should receive a T5 for it.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Sr. Member
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Oct 24, 2011
623 posts
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Timmins
The bank will send a T5; some banks have typed notes saying "GIC". It's up to the financial institution to figure out the accrued interest, so just go with that.
Sr. Member
Jan 23, 2009
946 posts
1932 upvotes
Ontario
your non-redeemable GIC purchase in July 2013 you will get the interest in July 2014 therefore the interest will be tax in your 2014 taxation year - don't worry about it when you are doing the 2013 tax return - you will not get T5 for the 2013 for the above gic
Deal Addict
Sep 30, 2008
1277 posts
311 upvotes
agit wrote: your non-redeemable GIC purchase in July 2013 you will get the interest in July 2014 therefore the interest will be tax in your 2014 taxation year - don't worry about it when you are doing the 2013 tax return - you will not get T5 for the 2013 for the above gic
I think u are correct, because the income reporting should be on a cash basis, ie., when received.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
jedi1648 wrote: I think u are correct, because the income reporting should be on a cash basis, ie., when received.
Correct in this case, however be aware that multi-year GICs which calculate and compound taxes annually but only pay them out at maturity (ie: those purchased through brokerages generally) do have taxes due each year.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.

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