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
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.
Most sales of investments will be shown on a T5008 Statement of Securities Transactions form which will be received from your brokerage. However, some disposals may not be shown on the T5008, including transfers to another account. They still must be reported as dispositions.
Most purchases and sales of investments will be shown on the Trading Summary that is provided by the brokerage. Again, some purchases and sales may not be shown, such as transfers to or from another account, some of which could be deemed dispositions.
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 income tax rates - Try to earn your investment income (outside of RRSPs) at the lowest tax rate possible.
Canada Revenue Agency (CRA) publications:
Revised: April 08, 2019
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