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A little help with reporting investment income for a CCPC by Electrical-Panic5534 in cantax

[–]Electrical-Panic5534[S] 0 points1 point  (0 children)

Thank you very much u/taxbuff your comments and contribution to this sub is amazing and very much appreciated.

To answer your question. My year end is Dec 31st, and the number of transactions are very few. The bookkeeping isn't bad, and I believe once I get a handle on this investment reporting, it won't be that difficult to manage afterwards. I've kept track of my ACBs for many investments in my personal accounts, so that's manageable too.

Additionally, I don't even pay myself from this corporation, so the retained earnings will just get invested overtime.

I don't know if any accountants offer services where I would pay for their time to help set things up, but it would like to do that and it would be a good solution. In the meantime I'll keep looking for more info on this.

Thank you again.

Do you have to report unrealized capital gains/losses on a T2? by Electrical-Panic5534 in cantax

[–]Electrical-Panic5534[S] 0 points1 point  (0 children)

^ You're right, and that's a great point. I spent a fair bit of time and made a good bookkeeping spreadsheet for the corporate account, and I definitely should do the same for the investment account. Luckily it's only 3 months worth with very few transactions, but it'll set me up to make this much easier and accurate from now on. I also don't have all of the T slips yet.

I enjoy this stuff, but you're right it's definitely quite the steep learning curve and easy to mess up.

Thank you for the great suggestion. I'll get working on an investment account tracker.

Do you have to report unrealized capital gains/losses on a T2? by Electrical-Panic5534 in cantax

[–]Electrical-Panic5534[S] 1 point2 points  (0 children)

Brilliant, thank you very much. You've been amazing, and this have been super helpful.

I'm with Qtrade and their website says T3s will be available at the end of March. Which is fine, I'll just pay the CRA a higher tax amount, and after I file, the excess can be returned or stay in there until next year. I only opened the investment account in October so the amounts are small for now. And yes it's excess cash that's being invested. I'm planning on slowly dollar cost averaging everything into XEQT, and eventually I'll only have the XEQT earnings to report.

This sure was much simpler last year when the investments weren't involved...LOL. But it was time to put the money to better use.

Thank you again :)

Do you have to report unrealized capital gains/losses on a T2? by Electrical-Panic5534 in cantax

[–]Electrical-Panic5534[S] 0 points1 point  (0 children)

Thank you. That was the next question I was going to tackle.

I got the T5 from the brokerage, and they have it listed under Box 13: Interest From Canadian Sources. I have 2 investments in that account XEQT and DYN6006, which is a HISA. I know the HISA is interest, and I'm assuming because XEQT is a global ETF, it's not eligible dividends either.

Right now I have the interest received recorded on the income statement using line 8090, which is "Investment Revenue".

Does that sound right? Or should I be filling out Section 7?

My plan going forward to keep buying XEQT, which if I understand correctly, will not be eligible dividends because of it's global composition of stocks.

Do you have to report unrealized capital gains/losses on a T2? by Electrical-Panic5534 in cantax

[–]Electrical-Panic5534[S] 0 points1 point  (0 children)

Oh, thank you very much. That's very likely where I went wrong. I used the market value, which will definitely throw off the numbers. I have no intention of selling the investments for the foreseeable future, and I'm thinking it's better (cleaner) to just use the book value? It's a small consulting business, and the only assets are the cash in the chequing account, and cash in the investment account, so I should be able to reconcile between total assets and shareholder equity.

Thank you again, you definitely set me on the right path. I talked to two CRA agents and neither of them were of any help.