Principales Questions: 1. Which amount must be included in box 20 (cost) of T5008 in the situations described in questions 2 to 5 (sales of naked options, followed by (i) expiration of option, (ii) exercise of option, (iii) closing out by the acquisition of an offsetting option on the market)? 2. Which amount must be included in box 20 of T5008 when there is a short sale of shares in the situations described in questions 6 (identical shares purchased by the short seller and delivered to the lender in the same taxation year as the short sale) and 7 (transfer of shares by the short seller to the lender is made after the taxation year of the short sale)?
Position Adoptée: 1. Zero or leave box blank. 2. Cost of the shares borrowed.
Raisons: 1. Subsection 49(1), options issued have no cost. 2. Previous CRA positions.
