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ECN, broker fees and taxation : ACB or expense in the year?

  • Last Updated:
  • Mar 2nd, 2022 6:57 pm
[OP]
Jr. Member
May 10, 2010
176 posts
121 upvotes

ECN, broker fees and taxation : ACB or expense in the year?

Greetings,

2021 was a good year.
I finally topped my TFSA and started a margin account with Questrade.

Tax time is upon us and I am wondering what to do with ECN fees and stock purchase related broker fees.

Do they increase my ACB for each stock or do I deduct them as financial fees in the year I encountered them.

Cheers, and thank you all. This is a great forum, and I learned a lot.
1 reply
Deal Addict
User avatar
Feb 1, 2012
1937 posts
3225 upvotes
Thunder Bay, ON
Acquisition costs get added to your ACB. Outlays and expenses from disposition get subtracted from your capital gain (or added to your capital loss). That's definitely the case for trade commissions. I assume it applies for ECN fees too. Capital gains or losses must be declared on Schedule 3 when you sell.

Here are some resources.
https://www.canada.ca/en/revenue-agency ... -base.html

https://www.adjustedcostbase.ca/blog/ho ... tal-gains/

Adjusted Cost Base is a good online tool for keeping track of ACB and gains / losses
https://www.adjustedcostbase.ca/
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.

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