Box 21 – Proceeds of disposition or settlement amount

You have to prepare a T5008 slip for all reportable transactions, regardless of the amount of proceeds. There is no administrative limit for reporting securities transactions.

Note

Box 21 may contain a negative amount only if the type of securities in Box 15 – Type code of securities is a future (FUT) or an option contract (OPC).

Enter, in dollars only, the total proceeds received by or credited to the recipient in exchange for the securities. See What are proceeds? for our definition of proceeds.

For equity linked notes, report accrued interest from the debt obligation to the time of transfer on a T5 slip (see Guide T4015, T5 Guide – Return of Investment Income). Do not include the accrued interest in the proceeds of disposition amount.

Example 1

A $10,000 Treasury bill is disposed of before it matures, and the bearer gets $9,500. The proceeds of disposition are $9,500. Enter "9,500" in box 21. Since the face amount of the Treasury bill is $10,000, enter "10,000" in Box 19 – Face amount.

Report only the total proceeds in box 21. Do not deduct any expenses from the proceeds and do not report negative amounts. See the Note for Box 21 above.

Example 2

A $15,000 discounted bond is called before maturity. The bondholder gets a net credit of $10,480, as follows:

Principal payment
$10,000
Add: Accrued interest
+ $500
Gross proceeds
= $10,500
Minus: Bank charges
- $20
Amount deposited to bondholder's account
= $10,480

Since the proceeds of disposition are $10,000, enter "10,000" in box 21. Do not include the accrued interest with the transaction proceeds. Report the accrued interest on a T5 slip. The bank charges do not represent an amount payable to the bondholder. Bondholders that are individuals can deduct this amount as outlays and expenses on Schedule 3 of the T1 return to determine the gain realized on the transaction.

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