Investment income from a non-registered (taxable) account must be reported on your Canadian tax return in the year you earn it, regardless of whether you sell the investment or withdraw the money. You'll report this income on Schedule 4 (Statement of Investment Income) using specific line numbers on your tax form depending on the income type: interest income goes on line 12100, eligible dividends on line 12000, non-eligible dividends on line 12010, and capital gains on line 13099 (after calculating the taxable portion). The CRA requires you to report all investment income earned within Canada and from foreign sources, and investment institutions like banks and brokers will send you tax slips (T5, T5008, or T3) in February that detail what you earned. Non-registered (or taxable) accounts are different from sheltered accounts like RRSPs and TFSAs. Unlike sheltered accounts, you cannot defer or avoid taxes on investment income generated in non-registered accounts.
Yes. The CRA requires you to report all investment income earned in a tax year, including interest, dividends, and unrealized gains if distributions were paid out, even if you didn't sell the investment. Only the actual income (interest, dividends, or distributions) must be reported, not unrealized gains.
You still must report it on your tax return. The $50 threshold only determines whether your financial institution is required to send you a T5 slip. Small amounts of unreported investment income can trigger CRA notices, so always include it.
Your T5 or T3 slip will indicate which type. Eligible dividends are generally from Canadian public companies and receive a higher dividend tax credit. Non-eligible dividends come from small private corporations or certain mutual funds and receive a lower tax credit.
Capital losses can only offset capital gains in the current year or carried back three years or forward indefinitely. Investment income losses (interest or dividend losses) cannot be deducted against other income types. This CRA rule may apply to you if you have both gains and losses in 2026.
You're still required to report it manually on Schedule 4 of your tax return. Keep your own records (bank statements, brokerage statements) as proof. The CRA may contact you if they don't match reported amounts.