Category Archives: Fundamentals of ACB

Can You Rely on Your Brokerage for Calculating Adjusted Cost Base and Capital Gains?

Calculating adjusted cost base and capital gains can be a very onerous task.  Canadian investor may question the need to do this themselves when they feel it should be their brokerage’s responsibility.  Unfortunately, brokerages are not required to provide their customers with information on adjusted cost base and capital gains.  In fact, in the general […]

Calculating Adjusted Cost Base with Reinvested Distributions / Dividend Reinvestment Plans (DRIPs)

In a non-registered account, the income from a dividend or distribution can be in the form of interest income, dividend income, foreign income, capital gains, or return of capital.  With the exception of return of capital, this income is usually immediately taxable in the year of the distribution.  Often mutual fund investors elect to have […]

How to Calculate Adjusted Cost Base (ACB) and Capital Gains

The Canada Revenue Agency (CRA) requires, in most cases, that taxes be paid on capital gains for all property including investments such as stocks, bonds, mutual funds, and exchange-traded funds. In the simplest form, a capital gain is equal to the proceeds received when selling a property, minus the original cost of the property. As […]

Return of Capital and How it Affects 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. Return of capital is a distribution from an investment that is not considered income.  It’s common for […]