You can expect to receive the tax forms and reports described below. This information is also reported to Revenue Canada (CRA) and the Ministère du Revenu du Québec (Québec Ministry of Revenue).
To access and print your forms and reports, log in to Account Management or Client Portal and then click Reports > Tax > Tax Forms.
T5008, Statement of Securities Transactions, reports the proceeds of all disposition on settlements during the year. The information contained on the form will help determine your capital gains (losses) for the year. Realized capital gains (losses) must be reported on your income tax return for dispositions that settle within the calendar year (by December 31). A separate T5008 will be provided for each transaction involving stocks, options or futures. You may review this information also available on your Annual or Monthly Statement.
Box 15 identifies the types of securities as stocks (SHS), options (OPC), futures (FUT) or mutual funds (MFT). Box 16 indicates the number of shares or contracts. Box 21 reports the gross proceeds less commissions and fees, for all your transactions.
T5, Statement of Investment Income, reports investment income paid to your account during the year. Investment income includes interest, dividends and certain foreign income. If you received income of $50 or more during the year from stocks, bonds or interest on credit balances you will receive a T5. Your T5 slip generally includes:
T5 is provided to you for information purposes only to give details about the income indicated on the T5 tax slip. Québec residents also receive a Relevé 3, described below.
T3, Statement of Trust Income Allocations and Designations (slip), reports distributions of trust unit income, capital gains or return of capital (ROC) from Canadian Unit Trusts during the year. The Income can be subdivided into categories that have different characteristics in the way they are treated for tax purpose. If you invest in Canadian Based Real Estate Investment Trusts (REITS), Income Trusts and Royalty Trusts, you will receive a T3 (and Relevé 16, if you are a resident of Quebec) and Statement of Trust Income Allocations which summarizes all distributions received from such securities during the year.
RL-18, Securities Transactions, is equivalent to the T5008 and reports the same information to the Québec Ministry of Revenue.
RL-3, Investment Income, is equivalent to Form T5 described above and reports the same information to the Quebec Ministry of Revenue.
RL-15, Statement of Limited Partnership Units reports the amounts allocated to the Members of a Partnership, reports income, losses and other amounts allocated from a partnership to the Quebec Ministry of Revenue. A separate RL-15 must be filed for each partner and contain all information requested. Partnerships use the RL-15 slip to provide their members with information about operating results (for example, income, losses, and other amounts allocated to the members for the fiscal period).
RL-16, Trust Income, is equivalent to the T3 described above and reports distributions of unit trust income, capital gains and eligible dividends to the Québec Ministry of Revenue.
Form 1042-S reports US source income earned by non-US persons. Generally this income is subject to US withholding tax, including interest, dividends, substitute payments in lieu and fees earned (paid to and for account managers) on your account for the year. You may receive multiple 1042-S forms reporting as each 1042S form reports a different type of income.
This information is also reported to the IRS. Each type of income is reported on a separate 1042S form using a code in Box 1. Common codes are:
Interest paid by US obligors including the U.S. Treasury
29) Deposit Interest
30) Original issue discount (OID)
06) Dividends paid by U.S. Corporations
13) Royalties paid on certain publicly offered Securities
34) Substitute payment – Dividends
35) Substitute- payment – Other
51) Other Income
Box 2 indicates the amount of income credited to your account of this type, and Box 3b and 4b indicates the rate at which tax was withheld and Box 7, the amount of U.S. Tax withheld.
If the income is exempt from withholding tax a code indicating this appears in Box 6.
Common exemption codes are:
01) Income effectively connected with a US trade or business
02) Exempt under an Internal Revenue Code section (income other than portfolio interest)
03) Income is not from US sources
04) Exempt under tax treaty
05) Portfolio interest exempt under an Internal Revenue Code section
06) Qualified intermediary that assumes primary withholding responsibility
07) Withholding foreign partnership or withholding foreign trust
Box 7a shows the amount of US tax withheld by IBKR.
Box 8 shows US tax withheld by agents other than IBKR. This occurs when foreign securities are held at depositories that do direct withholding.
Box 9 shows the amount of US Tax which was initially withheld by IBKR (this amount is included in box 7a) and then refunded by IBKR into your account because of a change in classification of the initial payment.
Box 10 is the sum of boxes 7a, 8, and 9 – your total tax withholding credit. This is the net amount of US tax withheld on the gross income in box 2. If crediting of foreign tax paid is available in your country this is the actual amount paid.
IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.