Calculating capital gain
How do I go about calculating my capital gain on the 50% of the stock I sold, for CRA purposes? Is it "first-in-first-out"?
Jul 6th, 2012 11:55 am
Jul 6th, 2012 1:51 pm
Jul 6th, 2012 5:39 pm
Jul 6th, 2012 7:08 pm
Jul 7th, 2012 10:41 am
Well, you have until April 30th 2013 to figure it out.
Jul 9th, 2012 6:57 am
Jul 9th, 2012 10:12 am
Is it a Canadian or American company?brunes wrote: ↑Jul 9th, 2012 6:57 amNow,when I go sell them - how do I calculate the capital gain for this? Do you calculate the ACB AFTER the 5% discount, or before? Also do you have calculate the ACB at the US/CAD date for that buying period? Or is it based on the time the shares were transferred into TD waterhouse? What about the dividends...
Jul 9th, 2012 12:20 pm
American, hence a lot of the complicatedness.
Hrm, that seems unfair :/ Because I am already being taxed on the discount on my paycheque as a taxable benefit. If I have to also take it into account on the capital gain, its starting to get to the point that the discount is pointless... being double-taxed on it would eliminate roughly 60% of the benefit, taking it down to around 2% instead of 5%... such a small amount I might as well drop out of this plan.Your ACB is based on what you actually paid so after discount.
Glad I opeted out of the DRIP!The transfer to TDW has no impact on these calcs. Dividends shouldn't affect ACB unless part of the distribution was return of capital which would lower your ACB. Although it doesn't appear to apply in your situation, DRIPs affect ACB since each DRIP is a new purchase. I avoid automatic DRIPs in all my unregistered accounts for this reason, more trouble than it's worth.
Jul 9th, 2012 2:51 pm
Unless there's been a tax law change since I left my old company a couple of years ago, this is incorrect.
Jul 9th, 2012 3:05 pm
The difference between the price of the stock and the price you pay is most definitely a taxable benefit.
Jul 9th, 2012 10:06 pm
Thanks for the correction, didn't interpret Brunes' income tax comment correctly. I'll edit my post above and direct readers to your reply.FunSave22 wrote: ↑Jul 9th, 2012 2:51 pmUnless there's been a tax law change since I left my old company a couple of years ago, this is incorrect.
The ACB = the price he paid for the stock + the amount of the taxable benefit
In other words, the ACB is the actual price of the stock on the day it was bought.
Jul 11th, 2012 7:18 pm
Jul 11th, 2012 7:22 pm
Line 405 - Federal foreign tax credit