Sunday, 13 April 2014

How to Deal with US Stock Dividends reported on T5's?

US stock dividends that are the result of spin off must be reported as income for residents of Canada, unless and election under Canada's section 86.1 can be made.  This election allows the deferral of reporting it as dividends income. The gain or loss must be reported when the stocks are sold.  But, not all
spin-off fit the bill.  Only US stocks that have satisfied Canada Revenue Agency get this benefit.  The ones that qualify for 2013, a mere eight stocks,  are listed on the CRA website and can be accessed by clicking on the link below.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/spnffs-eng.html

The election must be filed by the time tax returns are due, but CRA allows late elections.  Click the link below for more information.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/frnss-eng.html

Go to my website for information on important Canadian tax  matters.  Click the link below.

tavana.ca

This blog is for general information only and cannot replace professional advice.
The reader is invited to contact the writer to discuss the contents of the newsletter.
Readers are advised to seek professional advice before acting on the material
in this newsletter

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