Each year Canadian brokers issue a T5008 (Statement of Securities Transactions) for dispositions. Many investors assume the cost amount shown there is their adjusted cost base (ACB) — but it often is not. Understanding why helps you file an accurate return.
Why the T5008 Cost Amount Can Be Wrong for ACB
- Box 20 (cost or book value) may be blank, may reflect only what a single broker knows, or may not follow the ACB averaging rules across identical securities.
- If you hold the same security at more than one broker, no single T5008 sees your full position, so none can compute the correct average ACB.
- Transfers in-kind, DRIP purchases, returns of capital, and corporate actions frequently are not reflected accurately in a broker's book value.
In Canada, ACB Is Your Responsibility
The CRA expects you to report the correct ACB, and the responsibility rests with you — not the broker. For identical properties, ACB is calculated on an average-cost basis across all units you hold, regardless of which account or broker they sit in.
A Practical Reconciliation Workflow
Gather every buy, sell, dividend/DRIP, and corporate action for each security across all your accounts.
Compute the average-cost ACB yourself (a tool or spreadsheet helps), then compare your figure to the cost amount on each T5008.
Where they differ, keep documentation of your calculation. You generally report your correct ACB, not necessarily the slip's number — but be ready to support it.
Official Resources
Disclaimer: This article is informational only and not tax advice. HCC StockWatcher computes an estimated average-cost ACB from the transactions you import; it does not replace your official records or professional advice. Corporate actions and return of capital may require manual adjustments. Consult a qualified tax professional.
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