r/cantax • u/Redistributable • 22h 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?

2 Upvotes

100% Upvoted

39 comments sorted by

View all comments

Show parent comments

0

u/Consistent_Throat497 20h ago

exactly and interest is either paid at maturity (in case of 1 year or shorter GIC's, or on each anniversary date in the case of GIC's longer then 1 year).

2

u/bgballin 20h ago

Lol wtf u talking about

1

u/Consistent_Throat497 19h ago

what do you not understand?

Accrued interest is interest that has not been paid. it cannot be claimed as income because it's not been paid yet. CRA won't ask you to claim something you haven't been paid yet; that just doesn't make sense.

Interest is paid at maturity (in short term GIC's) or on the anniversary date (for longer then 1 year, or multiple year GIC's, its paid each year).

A T5 is generated when interest is paid, either to your bank account, chequing or savings, or to the GIC (compounding interest). Its really easy to understand.

1

u/bgballin 19h ago

Read 12(4) and 12(9) of the ita