Tax season can be stressful for investors with activity across multiple accounts. This checklist covers the key steps to organize your investment records for Canadian tax filing, whether you use a tax professional or file yourself.
Before You File: Gather Your Documents
- T3 Statement of Trust Income Allocation — issued by mutual funds and ETFs for distributions.
- T5 Statement of Investment Income — issued for interest and dividend income.
- T5008 Statement of Securities Transactions — issued by brokerages for securities sold.
- Foreign income documentation — US 1042-S forms, foreign tax paid receipts.
- Contribution receipts for RRSP contributions (for the deduction).
Capital Gains Reporting
Schedule 3 – Capital Gains (or Losses)
For each security sold in a non-registered account during the tax year, you need to report: description of the property, date of disposition, proceeds of disposition, adjusted cost base, and gain or loss. The T5008 from your brokerage lists the proceeds, but the ACB may need to be calculated from your own records if you have had multiple purchases, DRIP, or transfers.
Dividend Income
Report eligible Canadian dividends, non-eligible Canadian dividends, and foreign dividends separately. The gross-up and dividend tax credit apply only to Canadian dividends. Foreign dividends are reported at the exchange rate on the date received.
Foreign Tax Credits
If you had foreign tax withheld on US dividends (typically 15% under the Canada-US tax treaty), you can claim a foreign tax credit on Form T2209. This reduces your Canadian tax by the amount of foreign tax paid, up to the Canadian tax otherwise payable on that income.
Common Mistakes to Avoid
- Using the T5008 cost basis without verifying — brokerages may not have accurate ACB for transferred shares.
- Forgetting to include commission costs in your ACB calculation.
- Not reporting capital gains on cryptocurrency transactions.
- Missing the superficial loss rule when reporting losses (buying back within 30 days).
- Double-reporting: the T5008 reports proceeds, not gains — you calculate the gain separately on Schedule 3.
Official Resources
Disclaimer: This checklist is for informational purposes only and does not constitute tax advice. Tax rules are complex and change regularly. Always consult a qualified tax professional for advice specific to your situation, and verify all information against official CRA guidance.
Ready to track your portfolio?
Free to get started. Import from 12 brokerages. No credit card required.
Create Your Free Account