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Interest "Paid by You" on T5 (Canadian)


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Yea you can do it right on box 13, it doesn't really matter as CRA only sees the total from the T1.

 

You don't need to worry if they flag your return. If they do they'll send out an  information request and you reply and explain. It is your responsibility to correctly record and report your income. It doesn't matter if the t slip in wrong. For what it's worth i've seen plenty of incorrect T slips.

 

Only thing you need to be careful about is temporal differences. You get to net accrued interest against the cupon. So if you paid the accrued interest in 2019 but received the cupon in 2020 then you net the interest in 2020 not in 2019.

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An alternative would be to keep the amount of interest in box 13 as is and to claim the accrued interest upon purchase of the bond in line 22100 (deductible financial expense).

The net result is the same and it's the substance that counts.

See page 11 of the following for additional reference (investment income summary):

https://nbfwm.ca/~/media/FinancialMarkets/PDF/TaxGuide_CAN_2019_NBFWM.pdf?la=en

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