Category Archives: Advanced ACB Topics

Order of Transactions for Calculating Adjusted Cost Base

When calculating adjusted cost base, it’s important to use the correct ordering of the transactions.  In some cases it may not matter – for example, in a sequence of multiple buy transactions, the order within that sequence will not affect the final result.  But where buy transactions are interlaced with sell transactions, the order matters. […]

Phantom Distributions and Their Effect on Adjusted Cost Base now offers a streamlined method for importing phantom distribution and return of capital transactions for many exchange traded funds (ETF’s), publicly traded mutual funds, income trusts and real estate investment trusts (REITs).  Learn more about this feature. A phantom distribution (or reinvested capital gain distribution or notional distribution) occurs when an exchange-traded fund (ETF) […]

Calculating Adjusted Cost Base for Foreign Currency Cash

The Canada Revenue Agency requires taxpayers to report capital gains on foreign currency when the transactions are on capital account.  Adjusted cost base must be calculated in Canadian dollars in a similar fashion to securities.  When you convert Canadian dollars into a foreign currency, the adjusted cost base is established in Canadian dollars.  When the […]

Calculating Adjusted Cost Base when Purchasing Foreign Currency Securities

The Canada Revenue Agency requires capital gains or losses and adjusted cost base for securities to be reported in Canadian dollars when the transactions are on capital account.  This means that when calculating ACB, all amounts should be converted into Canadian dollars.  This occurs even if you use a cash balance in foreign currency to […]