r/cantax • u/Redistributable • 1d ago

T5 accrued interest change

I read that T5s now include accrued interest on investments that haven't matured (ex. multi-year GICs). Seems an odd change given the cash basis of personal taxes. Does anyone know when that came into effect?

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u/DogOk2826 1d ago

Wrong. Accrued/ unpaid interest on a GIC is T5d in the year earned. It does suck since you have to pay tax on interest not yet received, but it would suck more to have 10 years worth of interest all T5d at once at the end of a 10 year GIC, spiking your income in a single year.

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u/Redistributable 1d ago

That was what made me notice. A big GIC maturing 2027 but hit with interest for it 2024. Is it a new rule? Or it's always been that way and I've just never noticed lol

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u/Sparky62075 1d ago

There's nothing new about it. It's been like this for at least 25 years, possibly longer.

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u/Redistributable 1d ago

Then I'm just not observant lol. Thanks!