Investing

Couch potato investing for the last 14 years - tracking my progress

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  • Jan 18th, 2021 9:40 am
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Deal Addict
User avatar
Feb 1, 2012
1412 posts
1944 upvotes
Thunder Bay, ON
There are basically two aspects:

1) You need to report and pay tax on all income earned in taxable accounts, including dividends, interest and capital gains. This is not too hard because you will get either a T3 or T5 depending on the type of investment. This is plug and play... just take the info from the tax slips and copy it into your tax return. CRA even offers a service called Auto-fill, that fills such data directly into a tax program.

2) ACB as you mentioned. If you hold ETFs, ACB can be a little more complicated because ETFs may issue Return of Capital that must be subtracted from your ACB, and Reinvested Capital Gains Distributions that should be added to your ACB. Any time you buy you need to add to your ACB and any time you sell you need to subtract from your ACB so you can properly report capital gains or losses.

This CRA document explains ACB tracking. It focuses on mutual funds but is applicable to other types of investments.
Tax Treatment of Mutual Funds for Individuals

This document explains in depth how to track ACB including RoC and Reinvested Distributions
As Easy as ACB – Understanding and tracking your adjusted cost base with ETFs

This website is a good online tool for tracking Cost Base
Adjusted Cost Base.ca The Free and Easy Way to Calculate ACB and Track Capital Gains

Most brokers are good at tracking ACB these days, but if you hold a security at more than one broker you need to track it yourself, and if you transfer in-kind between brokers the proper cost base may not be tracked by the new broker.
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
Newbie
Dec 23, 2014
73 posts
4 upvotes
Montreal, QC
Somehow related to this, what about foreign taxes?
In my case, I use RSPP or TFSA, so I am good Canadian-wise, for taxes.

Assuming I have VGRO, VEQT, TOCA (TD), TOCM (TD), it seems to me there will be foreign taxes, from what I can see here: https://www.advisor.ca/my-practice/cont ... -and-etfs/

In short, it seems to me that there is no escape from these taxes (15% for the US equities, given these are registered accounts and so they are from a proven Canadian resident).
Is that the case?

Thanks again for your great help :)
Newbie
Aug 1, 2018
13 posts
1 upvote
Thanks @kasm @Deepwater

I'm planning to buy VUN in taxable for now. I believe VUN is better than VTI because I won't have to go through Norbet's Gambit and FWT is fully recoverable. If there is any advantage of VTI over VUN, please let me know.
Deal Fanatic
Jan 22, 2006
5039 posts
2543 upvotes
Northside
Thank you to @freilona for directing me to this thread, much appreciated. Wish I found this thread a lot sooner haha. Oh well, better late than never!

I have a decent amount of cash sitting in my CAD RRSP and USD RRSP accounts and my time horizon is more than 25 years. I'm not too interested in having bonds in my portfolio but wanted your thoughts on the following:

CAD RRSP:
VEQT 100%

US RRSP:
VTI 80%
ARKF or ARKK at 20%

Thank you all!

ps : Amazing work here @Germack, keep it up!
[OP]
Deal Addict
Oct 1, 2006
2213 posts
1922 upvotes
Montreal
DoOrDie wrote: Thanks @kasm @Deepwater

I'm planning to buy VUN in taxable for now. I believe VUN is better than VTI because I won't have to go through Norbet's Gambit and FWT is fully recoverable. If there is any advantage of VTI over VUN, please let me know.
VTI will be a bit cheaper:

Approximate Total Cost:
VUN: 0.17% (non-registered); 0.44% (TFSA); 0.44% (RRSP)
VTI: 0.05% (non-registered); 0.32% (TFSA); 0.05% (RRSP)

courtesy of Dan Bortolotti

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redmintgold, LinasB6899, Yummier, neodenjin, Deepwater, Germack, sirisak