The superficial loss rule defines certain situations in which capital losses are disallowed.  Section 54 of the Income Tax Act indicates that a superficial loss is a loss occurring from the sale of property when both of the following two conditions are met: During the period that begins 30 days before and ends 30 days […]

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. […]

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 […]

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 […]