If you invested in a tax shelter in 2016, you’ll receive either a:
- T5003: Statement of Tax Shelter Information slip or a
- RL-14: Information about a tax shelter slip (resident of Québec)
According to the Canada Revenue Agency (CRA), a tax shelter is loosely defined as a gifting arrangement or the acquisition of property to obtain favourable tax benefits. Gifting arrangements where the donor has a limited recourse debt is also considered to be a tax shelter.
Whether gifting or acquiring, the idea behind a tax shelter is simple; the tax benefits and deductions resulting from a tax shelter arrangement should equal or exceed the cost of the gift or the property in question.
Tax Tip: There are several things you should do before participating in a tax shelter arrangement, including getting professional advice from an independent tax expert. Click this link to learn more.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:
- Type T5003: Statement of tax shelter information in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the page for your T5003, enter your information into the tax software.
