Statement of Securities Transactions: Who Qualifies and What You Get
Learn how to use your Statement of Securities Transactions to track proceeds from your investments and manage your tax reporting.
A Statement of Securities Transactions is a document provided by financial institutions that provides a formal record of the money received from the sale of your investments.
Who it's for
This document is specifically for investors who have sold securities. If you have held assets in a brokerage account and have completed a sale, you are the intended recipient of this information. It is a vital tool for anyone managing an investment portfolio who needs to track the movement of their capital.
What you get
The primary benefit of this statement is a detailed record of the proceeds from your dispositions. In plain terms, it shows the total amount of money generated from the sale of your securities. This record helps you understand the gross amount you received when you closed out your positions.
What it costs you
There is no direct fee to obtain this document from the government, as it is provided by your broker. You will typically find these records within your existing investment account through your financial institution. While the document itself is a standard part of your account management, you may need to spend time organizing these records for your own financial tracking.
The catch to know
The most significant catch is that the "cost" field on the statement is often blank or contains incorrect information. This means the document may not automatically show you the full financial picture needed for tax purposes. Because the statement might not show what you originally paid for the asset, you must take the extra step of calculating your own Adjusted Cost Base (ACB). The ACB is the average cost of your investments, and calculating it accurately is essential for understanding your actual profit or loss.
How to apply
- Access your online account through your chosen financial institution or broker.
- Look for a section labeled "Tax Documents," "Statements," or "Transaction History."
- Locate the specific Statement of Securities Transactions for the relevant period.
- Download and save the document for your personal financial records.