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Applying the Superficial Loss Rule for a Partial Disposition of Shares

The superficial loss rule defines certain circumstances when capital losses are denied.  The details of the superficial loss rule are discussed here: What Is the Superficial Loss Rule? Here we’ll expand on the superficial loss rule by discussing some cases when a loss can be partially denied instead of being denied in full. When the […]

Getting Started on AdjustedCostBase.ca

If you’re new to AdjustedCostBase.ca, this guide will help explain how to get started with step-by-step instructions.  AdjustedCostBase.ca is a tool that allows Canadian investors to calculate adjusted cost base, a necessary step in determining capital gains.  It’s designed to be easy to use and you can register for an account instantly and for free. […]

The Capital Gains Exemption on In-Kind Charitable Donations of Stocks, Mutual Funds and Bonds

Charitable donations can be made not only in the form of cash, but can also be made as in-kind contributions of property.  When an in-kind contribution consists of publicly traded shares, mutual funds or bonds, any capital gains realized are eligible for an inclusion rate of zero.  This means that a donor can avoid playing […]

Calculating Capital Gains with Incomplete Records

In order to accurately calculate adjusted cost base and capital gains a complete history of all transactions is required, including not only purchases and sales, but also reinvested distributions, return of capital, phantom distributions, and splits.  A common and unfortunately occurrence is when a Canadian investor has owned a security for a long time, has […]

Calculating Capital Gains on Redemptions of Bonds and Preferred Shares

Often preferred shares are issued with conditions allowing the issuer to redeem the shares after a certain date for a predetermined price (the issuer has the option to redeem the shares, but not the obligation).  Preferred shares can also have a predetermined maturity date, whereby the issuer has the obligation to redeem the shares on […]