How to calculate investment income for non-calendar year-end for T2

Dear colleagues,

A client has an investment portfolio in a corporation that has a non-calendar year-end. The problem is the T3s and T5s issued by the broker reflect the calendar year. The broker will not issue non-calendar year-end T slips. Also the broker can produce dividend statements for the period required, but found most of the investment income was incorrectly listed as dividends, even though some was interest, capital gains distribution, and return of capital. Short of manually calculating the tax character of each dividend, is there an easier fix? My tendency would be to simply input the last T3 and T5 as I know it will all come out in the wash; is this wrong? 

Answer

Hi Dave,

But how do you get this information?

As an example, the broker's statement shows dividends from an exchange traded fund. I would have to go to the exchange traded fund company's website to find out if it was interest, foreign income, dividends, or capital gains distributions, and then build a spreadsheet to track it all. That is a lot of work and cost to the client.

I believe (in my experience) most accountants are taking the statements at face value and would not put in the amount of work you are describing. 

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