VCN What type of transaction is this?
I'm trying to use adjustedcostbase.ca to track my ACB and on March 31, VCN paid out a distribution, but I'm not sure what type of transaction to select from the drop down list on adjustedcostbase.ca. Anyone?
Apr 15th, 2017 4:11 pm
Apr 15th, 2017 5:47 pm
Apr 16th, 2017 5:19 am
Deepwater wrote: ↑ Mar 31 was a cash distribution, which does not affect Adjusted Cost, so you do not have to put it in adjustedcostbase.ca. It's just cash paid to you which is taxed as income for the year in which it is paid. It will be on your T3 for 2017.
Unless you reinvested the distribution, which is described here: https://www.adjustedcostbase.ca/blog/ca ... ans-drips/
The most common transactions affecting ACB for ETFS are:
- Buy & Sell (obviously)
- Return of Capital (which lowers ACB)
- Reinvested Capital Gains Distribution (which raises ACB)
In any transaction screen you can click "Display Help" to get a brief help description. Or click "Blog" at the top of the screen and it brings you to a topic list and search box.
This WP from PWL Capital has a very detailed description on how to use adjustedcostbase.ca
https://www.pwlcapital.com/pwl/media/pw ... f?ext=.pdf
Apr 16th, 2017 6:46 am
Glad to help.
Yes. It is needed for any property where you may have a capital gain or loss, such as ETFs, mutual funds, stocks, bonds, real estate (other than primary residence), precious metals- Do we need to calculate ACB for Mutual Funds (in my case I had two e-series securities)?
No. Capital gains are reported on Schedule 3 which has sections for different types of property, and columns for ACB, proceeds of disposition and capital gains. You need to report the ACB, but not the calculations for it.- Do we need to submit the ACB calculations in the Tax Return to CRA? I assume that the answer is "no".
You should keep the ACB calculations in case CRA requests them.- But, if it is "yes" how do we submit the ACB when most people probably submit their Tax Return online now? Or we just keep those in case CRA wants to see them?
No. Your ACB calculations are used to determine and report capital gain or loss when you sell shares.- Are the amounts included in the T3 (not sure if T5 too) slips received from the bank/brokerage affected by the amounts obtained in the ACB calculations?