Investing

T3 slips for ETFs or REITS (non-registered account) - anyone receive yet for 2021 tax year?

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  • Mar 29th, 2022 11:24 pm
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Feb 1, 2012
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cheapshopper wrote: I usually just put all number into tax software. But this year i think about it more. For my cash account that only hold ETF, i didnt sell anything but i got T3 that show some capital gain in it. Why?

ROC, Divided, i understand. I just dont understand why there are capital gain and "other business income"? I only buy and hold.
Your ETF sold some of its holdings, and those sales realized a capital gain. These capital gains are passed on to the investor, to be taxed at their marginal tax rate. Usually funds will only make one capital gains distribution at the end of the year, so investors are only taxed on the net amount of capital gains - capital losses for the whole year.

Not sure what "other business income" is. T3 box 25 Foreign non-business income is usually foreign dividends, which are taxed at the rate for other income, not as dividend income.
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does it matter?
cheapshopper wrote: I usually just put all number into tax software. But this year i think about it more. For my cash account that only hold ETF, i didnt sell anything but i got T3 that show some capital gain in it. Why?

ROC, Divided, i understand. I just dont understand why there are capital gain and "other business income"? I only buy and hold.
You are supposed to get T3 for non registered investment right? So I presume this is non registered and any gains will be taxable even if not sold. I also have about 65K in non registered and not selling anything for last 2 years. I get it. Not sure but may be when you sell you night get T5008. But may be it depends on if it is mutual fund and yours is ETF. mine were always mf till covid hit. so my knowledge is very limited.


But what ⬆he⬆ explains looks correct.

Income earned on investments held in a registered plan is not immediately taxable and a T3 tax slip is not issued. However, a T3 tax slip will be issued if ETFs are held in a non-registered plan and there's a taxable distribution. Annual tax applies to any distributions received other than return of capital.

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Jul 30, 2005
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Still waiting for IBKR to deliver T3's.
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cheapshopper wrote: I usually just put all number into tax software. But this year i think about it more. For my cash account that only hold ETF, i didnt sell anything but i got T3 that show some capital gain in it. Why?

ROC, Divided, i understand. I just dont understand why there are capital gain and "other business income"? I only buy and hold.
Within the ETF, the portfolio sold assets at a profit. That is a capital gain they have to declare and pass through to its holders. You should be happy some of the distribution is capital gains and not only "other business income" as the capital gains have lower tax rate.
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Deepwater wrote: Your ETF sold some of its holdings, and those sales realized a capital gain. These capital gains are passed on to the investor, to be taxed at their marginal tax rate. Usually funds will only make one capital gains distribution at the end of the year, so investors are only taxed on the net amount of capital gains - capital losses for the whole year.

Not sure what "other business income" is. T3 box 25 Foreign non-business income is usually foreign dividends, which are taxed at the rate for other income, not as dividend income.
"Other business income" you often see with REITs, which are also declared on T3s (as they are also trusts). A REIT is still a functioning business operation, so their profits that get distributed to unitholders go into the "other business income" category.
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techcyberman wrote: Within the ETF, the portfolio sold assets at a profit. That is a capital gain they have to declare and pass through to its holders. You should be happy some of the distribution is capital gains and not only "other business income" as the capital gains have lower tax rate.
Does it mean some of the money I received is actually not dividend, but is capital gain? Wasn't paying attention what they are, just saw money show up in my account from time to time.
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cheapshopper wrote: Does it mean some of the money I received is actually not dividend, but is capital gain? Wasn't paying attention what they are, just saw money show up in my account from time to time.
Yes. Money you receive from ETFs are technically called distributions, not dividends. They can consist of any of dividends, capital gains, interest or other income, foreign income (less foreign tax withheld), and return of capital. Purpose of the T3 is to describe how it is specifically broken down for your income tax return.
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Feb 4, 2015
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Got some T3s today.

Looked at last year and received some on Mar 30!!
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techcyberman wrote: Yes. Money you receive from ETFs are technically called distributions, not dividends. They can consist of any of dividends, capital gains, interest or other income, foreign income (less foreign tax withheld), and return of capital. Purpose of the T3 is to describe how it is specifically broken down for your income tax return.
Thanks. This is the part that confused me, because I keep thinking they are "dividend".
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Dec 5, 2006
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A bit off topic: does VFV have ROC? Thanks
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Dec 28, 2007
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Finally got my T3 from TDDI (eServices).
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ilovetoyota wrote: I received Form 1042S for my non-registered account today, does anyone know what is that for?

I usually receive T5 T5508 and T3 to report tax, what is the 1042S for? Can I ignore it?
What investment was this received in relation to? If it was a publicly traded limited partnership with income effectively connected to the USA, you have a filing obligation to the USA and 37% withholding tax rate.

What brokerage is this with?
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smartie wrote: Thanks

I am thinking buy VFV in non registered account. So I was wondering how difficult to file tax because of ROC
For non-reg, I'd rather just buy quality blue-chip stocks. As long as you're not trading in and out, blue-chip stocks makes it so much easier and simpler. Note that my registered accounts are only filled with ETFs.
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