We read every investment slip, so you don’t have to.
If your financial advisor sent you here, welcome. This page explains what your T3s, T5s and T5008s actually mean, how capital gains work, and the registered-account moves worth making before the deadlines.
We read every slip. You don’t have to.
The slip decoder
Three slips do most of the damage.
T5, interest & dividends
Bank interest and Canadian dividends. Dividends arrive "grossed-up" with a credit that offsets tax, the number on the slip is not the number you received, and that’s normal.
T3, fund distributions
Mutual funds and ETFs pass their income through to you. T3s arrive late, often into April, which is why investors who file early end up refiling. We wait for the stragglers.
T5008, what you sold
Every sale, but often with a missing or wrong cost base. Reporting it as-is can overstate your gain badly. The fix is a proper adjusted cost base, which we track.
Capital gains, actually explained
Half the gain, at your rate, if the cost base is right.
- 50% of a capital gain is taxable, at your marginal rate. A $10,000 gain adds $5,000 to your taxable income.
- Your adjusted cost base (ACB) is the real key: reinvested distributions, return of capital, and purchases in multiple lots all change it. Get the ACB wrong and you pay tax on gains you never made.
- Selling a loser to offset gains works, but rebuying the same security within 30 days triggers the superficial loss rule and the CRA denies the loss.
- Timing a sale in December versus January moves the tax bill a full year. Before a big sale is the moment to call, not after.
Registered accounts
These are the moves worth making before the deadline.
- RRSP: contributions in the first 60 days of the year can still deduct against last year's income. We track your room year-round, not just in March.
- TFSA: growth and withdrawals are tax-free, but over-contributing draws a monthly penalty, know your room before you top up.
- FHSA: the newest tool, deductible going in, tax-free coming out for a first home. If anyone in the household qualifies, it’s usually worth funding first.
- Which account for which asset matters: interest-heavy holdings shelter best; foreign dividends and the withholding tax question deserve a real conversation.
Fair questions
What investors ask us first.
Which slips should I expect if I have investments?
Typically a T5 for interest and dividends, a T3 for mutual fund and ETF distributions (these arrive late, often into April), and a T5008 for anything you sold. If you have a non-registered account at more than one institution, expect a set from each.
Why did I pay tax when my fund lost money?
Funds distribute the income and gains they realize inside the fund during the year, even in a down year. The distribution is taxable to you now, but it also raises your adjusted cost base, so you are not taxed twice when you eventually sell.
Do I need to report my TFSA or RRSP investments?
Growth inside a TFSA or RRSP is not reported on your return. RRSP contributions generate a deduction slip; TFSA activity generally does not appear on your return at all. The slips that matter are for non-registered accounts.
What is the T1135, and does it apply to me?
If the total cost of your foreign property, including US stocks held at a Canadian broker, exceeds $100,000 CAD at any point in the year, you must file a T1135 Foreign Income Verification Statement. The penalties for missing it are steep, and it’s one of the most commonly missed forms we see.
Bring last year's return and your latest statements.
Twenty minutes, free. We will tell you if anything was missed, most years, something was.