[Gheko]

Can someone tell me how to calculate the ACB and average cost per unit when one sells shares at a loss. I deliberately sold at a loss at the end of the year 2009 to reduce tax payable because of other gains.....when I see my bank's investment statement, they show a Book Value much lower on the remaining shares I hold than I show. Does this mean that the ACB takes into account the loss I incurred; eg., I sold 1500 shares at $1.00 each = 1500.00; they were worth 3.602 each at the time of sale = $5403.00; I believe the value of the shares I still hold (the calculation of my ongoing ACB) would be the amount I have actually paid into the shares less the $1500 I got when I sold 1500 of the shares. Is this right? OR should I be reflecting the loss of $5403 in my calculations for ongoing ACB?? I have not included any of my fees etc. in the numbers given above. Thanks to anyone who can answer this for me..........the bank through which I do my own on line investing could not answer this.

[Tim Parris]

Here is a good place to start

http://www.cra-arc.g...ADME.html?=slnk

[JohnNP]

Gheko, on Feb 1 2010, 10:37 AM, said:

the bank through which I do my own on line investing could not answer this.

of course the online investment bank doesnt do taxes - nor do they keep records for tax purposes - tax is complex and they have no wish to be sued for doing it wrong

unfortunately you are mistaken in your understanding of both book value and acb, and there are many more complexities which could potentially affect the calculation

if you have investments, it is the job of your broker/service to handle the trades, and the job of a suitably qualified accountant (not programmer) to track the tax values

software does calculations the same way as a calculator - but what should be calculated is a matter of tax law


btw - this orange forum is for profile software users/matters - presumably you are using quicktax (blue forum)

[Psamchiu]

Gheko, on Feb 1 2010, 06:37 PM, said:

Can someone tell me how to calculate the ACB and average cost per unit when one sells shares at a loss. I deliberately sold at a loss at the end of the year 2009 to reduce tax payable because of other gains.....when I see my bank's investment statement, they show a Book Value much lower on the remaining shares I hold than I show. Does this mean that the ACB takes into account the loss I incurred; eg., I sold 1500 shares at $1.00 each = 1500.00; they were worth 3.602 each at the time of sale = $5403.00; I believe the value of the shares I still hold (the calculation of my ongoing ACB) would be the amount I have actually paid into the shares less the $1500 I got when I sold 1500 of the shares. Is this right? OR should I be reflecting the loss of $5403 in my calculations for ongoing ACB?? I have not included any of my fees etc. in the numbers given above. Thanks to anyone who can answer this for me..........the bank through which I do my own on line investing could not answer this.

I hope you have not purchased the indentical shares directly or indirectly within 30 days. Otherwise the loss will be denied.