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T5008 Slip Explained: Securities Transactions in Canada (2026)

Updated

What Is a T5008 Slip?

The T5008 Statement of Securities Transactions reports the proceeds from selling investments in taxable accounts.

Feature Details
Full name Statement of Securities Transactions
Issued by Brokerages, mutual fund companies
Reports Proceeds of disposition (sale amount)
Does NOT report Your actual capital gain
Threshold All transactions over $25

T5008 Box Guide

Box Description Notes
13 Year Tax year of the transaction
14 Recipient type Individual, corporation, trust
15 Account type Non-registered, TFSA, etc.
16 Security description Name of stock, ETF, mutual fund
17 CUSIP number Unique security identifier
20 Proceeds of disposition Sale price × quantity
21 Cost or book value Often blank or inaccurate

The ACB Problem

Why Cost (Box 21) Is Often Wrong

Issue Explanation
Blank Brokerage not required to provide
Only one purchase Doesn’t reflect average if you bought multiple times
Transfer-in Brokerage doesn’t know your original cost
Reinvested distributions Not included in cost basis

You must calculate your own adjusted cost base (ACB).

What Affects Your ACB

Action Effect on ACB
Buy shares Increases ACB
Sell shares Decreases ACB (proportionally)
Reinvested dividends Increases ACB
Return of capital Decreases ACB
Stock split No change to total ACB
Transfer between brokerages No change

How to Calculate Capital Gains

Basic Formula

Capital Gain = Proceeds (Box 20) − Adjusted Cost Base − Selling Costs

Example: Single Purchase and Sale

Transaction Amount
Bought 100 shares at $50 $5,000 ACB
Commission on purchase +$10
Total ACB $5,010
Sold 100 shares at $75 $7,500 proceeds
Commission on sale -$10
Net proceeds $7,490
Capital gain $7,490 - $5,010 = $2,480

Example: Multiple Purchases (Average Cost)

Date Transaction Shares Price Total
Jan Buy 100 $40 $4,000
Jun Buy 50 $60 $3,000
Total 150 $7,000
ACB per share $46.67

When you sell 100 shares at $70:

  • Proceeds: 100 × $70 = $7,000
  • ACB used: 100 × $46.67 = $4,667
  • Capital gain: $7,000 - $4,667 = $2,333

Remaining ACB: 50 shares × $46.67 = $2,333

Reporting T5008 on Schedule 3

What to Report

Schedule 3 Column What to Enter
Description Security name
Proceeds Box 20 from T5008
ACB Your calculated ACB
Outlays/expenses Selling commissions
Gain or loss Proceeds - ACB - expenses

Taxable Capital Gain

Amount Calculation
Total capital gain From Schedule 3
Inclusion rate 50% (first $250,000)
Taxable capital gain Report on Line 12700

For 2026, capital gains above $250,000 are included at 66.67%.

Common T5008 Situations

ETF Sale with DRIP Reinvestments

If you used a Dividend Reinvestment Plan (DRIP):

Transaction ACB Impact
Initial purchase Add to ACB
Each DRIP reinvestment Add to ACB
Distribution (T3) Already taxed, add to ACB
Sale Use total ACB

Track every DRIP purchase to avoid double taxation.

Mutual Fund Switch

Scenario Tax Impact
Switch between funds Deemed disposition, triggers gain/loss
Same series, different currency Usually not a disposition

Switching mutual funds typically triggers a capital gain or loss.

Transfer to Another Brokerage

Type Tax Impact
In-kind transfer No disposition, no gain/loss
Sell and re-buy Capital gain/loss realized

When you transfer “in-kind,” no T5008 is issued and no tax is owed.

Stock Split or Consolidation

Event ACB Impact
2-for-1 split Same total ACB, half per share
10-for-1 consolidation Same total ACB, 10× per share

Stock splits don’t change your total ACB, just the ACB per share.

Return of Capital Distributions

Event Impact
ROC distribution Reduces ACB
ACB goes negative Triggers capital gain

Track return of capital from T3 slips to adjust your ACB.

Superficial Loss Rules

You cannot claim a capital loss if you buy back the same security within 30 days before or after the sale.

Rule Details
Denied loss Can’t claim immediately
ACB adjustment Lost amount added to new shares’ ACB
Period 30 days before and after
Applies to You, spouse, corporation you control

Example

Date Transaction
Dec 1 Sell at $5,000 loss
Dec 15 Buy back same stock
Result Loss denied, added to new ACB

Missing T5008 Information

Finding Your Proceeds

If Box 20 seems wrong:

  • Check trade confirmations
  • Review brokerage statements
  • Calculate: shares sold × price per share

Tracking Your ACB

Use one of these methods:

  1. Spreadsheet: Track every buy, sell, and distribution
  2. ACB tracking software: AdjustedCostBase.ca, Wealthica
  3. CRA’s method: They do not track ACB for you

Multiple Brokerages

If you hold the same security at different brokerages:

Rule You Must
Same security = one ACB Combine purchases across all accounts
Calculate average Total cost ÷ total shares
Each sale Uses the combined ACB

T5008 vs Other Slips

Slip Reports Triggers
T5008 Proceeds from sales You calculate gain
T5 Dividends, interest Investment income
T3 Trust distributions May include cap gains

What If You Don’t Receive a T5008?

Situation Action
Under $25 threshold Still report on Schedule 3
Transfer to another brokerage No T5008 needed
In RRSP/TFSA No T5008 issued (registered)

Always report all securities sales, even without a slip.

Key Deadlines

Deadline Description
February 28 Brokerages issue T5008s
April 30 Tax filing deadline
3 years back Carry-back capital losses
Indefinitely Carry-forward capital losses

Tips for T5008 Filing

  1. Track ACB throughout the year, not just at tax time
  2. Keep trade confirmations for all purchases
  3. Don’t trust Box 21 — calculate your own ACB
  4. Watch for superficial losses near year-end
  5. Report losses even if you had no gains this year