Splitting income on T3, T5, and T5013 slips

Many investment accounts, trusts, and business interests generate tax slips each year—including T3, T5, and T5013forms. If the underlying investment is jointly owned, income must be divided and reported accurately between all owners—even if the slip is only issued in one person’s name.

This matters because the Canada Revenue Agency (CRA) expects income to be reported based on actual ownership or contribution to capital, not simply based on who received the slip. Misreporting these amounts can lead to incorrect tax filings and future audits.

What Are T3, T5, and T5013 Slips?

Each of these slips reports a different type of income from investment or business activity.

T3 (Statement of Trust Income Allocations and Designations)
Reports income from mutual funds, ETFs, income trusts, or other trusts. It includes interest, dividends, capital gains, and return of capital.
T5 (Statement of Investment Income)
Reports interest and dividends earned on bank accounts, GICs, bonds, and corporate shareholdings.
T5013 (Statement of Partnership Income)
Reports income, losses, capital gains, and tax credits from a partnership, such as a limited partnership or business venture.

How to Split Income from Shared Investments

If an account or investment is jointly owned, the income reported on the slip must be divided according to each owner’s share of ownership or contribution. The CRA requires you to allocate income based on beneficial ownership, not the name on the slip.

Key considerations:

Who provided the capital for the investment?
The person who contributed the funds is generally entitled to the income, even if someone else’s name is on the slip.
What is the agreed ownership percentage?
Income should be split in proportion to ownership. For example, a 70-30 split would apply across all line items.
Is there a signed agreement or supporting documentation?
Although not required, keeping records of contributions or agreements can help defend your split if CRA requests clarification.

How to Report a Shared T-Slip

If you receive a T3, T5, or T5013 slip that includes jointly earned income, you will need to report your share only, and adjust for the rest. This process depends on whether the slip is issued in both names or only one.

If the slip is issued in one name:

The named person reports the full income amount on the appropriate line (e.g., line 12100 for T5, line 12000 for dividends).
That person deducts the other owner's share on line 23200 (Other deductions).
The other owner reports their share of income normally on their return using the correct line.

If the slip is issued in both names:

Each person simply reports their share of the income directly.
CRA does not require any additional adjustment if the income matches ownership percentages.

Tip: When splitting slips, both parties should attach a short note or memo to their tax records showing the breakdown and the reasoning behind it.

How to Split Common Slips by Ownership

Slip Type	Income Type	Typical Reporting Line	Adjustment Needed? (if one name only)
T3	Trust income, capital gains, ROC	Line 12000, 12100, 13200	Yes, use line 23200 to deduct co-owner's share
T5	Interest, dividends	Line 12100, 12000	Yes, if not jointly named
T5013	Partnership income or loss	Line 12200 or others	Yes, depending on ownership and slip details

What to Do with Return of Capital (ROC) and Capital Gains

Some T3 slips include return of capital, which is not taxable income but reduces your adjusted cost base (ACB) of the investment. If you split the income, you must also:

Adjust each owner's ACB proportionately.
Keep year-end fund statements or ROC summaries for each owner’s records.
Recalculate capital gains correctly when the asset is eventually sold.

This is especially important for ETFs or income trusts where ROC is common.

Tip: If you hold significant shared investments or plan to open joint accounts, clarify ownership shares in writing. Doing so can simplify your tax reporting and ensure long-term consistency.