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Home  ->  Filing Your Return  ->  Stocks, Bonds etc. -> Investing Tax Issues, Tax Treatment of Investments

Tax Issues re Investing, and Tax Treatment of Different Types of Investments

Are Your Gains and Losses Capital or income?

Trade Date and Settlement Date, Last Trade Date in the Tax Year

Reporting Foreign Transactions on Your Tax Return

Tax Treatment Of Income From Different Investments

In Kind Transfers Not On Your T5008, Do NOT use Autofill for T5008

Investment Types And Tax Treatment Resources

Canada Revenue Agency (CRA) Resources

Tax Treatment Of Income From Different Investments

This information is regarding investments which are held outside of RRSPs or other registered accounts - i.e., in non-registered accounts.

If you have purchased an investment in a non-registered account, it is your responsibility to keep records which will allow you to calculate the adjusted cost base (ACB) of that investment, in Canadian dollars.  If you have non-registered investments held in US$, it's very important to keep accurate records of the date the investments were purchased, and the exchange rate on that date, to calculate your Canadian dollar ACB.  Your brokerage statements will show you the US$ ACB of your investments, but will not show you the Cdn$ ACB.

If you have disposed of an investment held in a non-registered account, it is your responsibility to record that disposal on your income tax return for the year in which it was sold, in Canadian dollars.

In Kind Transfers Not On Your T5008, Do NOT use Autofill for T5008

Your brokerage will issue a T5008 and a trading summary showing your purchases and sales of investments in your non-registered account, to help you prepare Schedule 3 of your tax return.  For some reason, in kind transfers may not be shown on these documents (although it looks like some brokerages have been including this information since 2020).  You are still required to report these deemed dispositions on Schedule 3.

When the proceeds are in US$, they must be converted to Cdn$ using the exchange rate at the date of the transaction.  If the disposition is the result of an in-kind contribution to a registered account, the Cdn$ amount of the contribution is also the proceeds of disposition.

If you use Autofill Your Return, and have T5008 transactions, any US$ dispositions will only show the US$ amounts instead of Cdn$ amounts.

For dispositions of investments, the T5008 shows only the proceeds - it is up to the taxpayer to track the Cdn$ cost of these investments to deduct from the proceeds, to determine the gain or loss.

If you use a professional tax preparer, it is your responsibility to provide them with all the information required to properly record disposals and their ACB.

Tax Tip:  Even if a sale is not included on the T5008 or trading summary, it is the taxpayer's responsibility to ensure that the sale is recorded on Schedule 3 of their tax return.  Using a professional tax preparer? It is still the taxpayer's responsibility!!!

Investment Types And Tax Treatment


    - Interest-paying bonds

    - Non-interest paying bonds (strip bonds)

Treasury bills (T-bills)

Shares in corporations - Canadian and foreign

Call and put options - timing of proceeds received for tax purposes

Income trusts, including Real Estate Investment Trusts (REITs) - how to calculate adjusted cost base and capital gains

Mutual funds - how to calculate adjusted cost base and capital gains

Exchange-traded funds (ETFs) - how to calculate adjusted cost base and capital gains

Flow-through shares

Futures contracts, commodity futures

Term deposits, guaranteed income certificates

Warrants and rights to acquire additional shares Resources

Superficial losses and other disallowed losses

Transfer capital losses to a spouse

Which investments should be held in an RRSP/RRIF, TFSA, or non-registered account?

Which investments should be held inside vs outside the RRSP?

Recommended stocks (ETFs) for inside or outside of your RRSP or TFSA

Investment income tax rates - Try to earn your investment income (outside of RRSPs) at the lowest tax rate possible.

Canada Revenue Agency (CRA) Resources

IT-479R Transactions in Securities, and the associated Special Release IT479SR (both Archived)

Line 12100 - Interest and other investment income (before 2019, line 12100 was line 121)

General Information (T5008) Deemed Dispositions

Revised: April 03, 2024


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