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Discussion Starter #1 (Edited)
I did the following transactions:
BUY 26 August 2010 300 HZU 30.23/share (after split 900 shares at 10.07/share) Net Total $9,078.99

SELL 06 January 2011 900 HZU Net Total $22,172.01

BUY 14 January 2011 1,000 HZU Net Total $22,289.99
BUY 19 January 2011 2,000 HZU Net Total $41,389.99

SELL 09 March 2011 3,000 HZU Net Total $95,885.01

All sold

Than
BUY and still hold on 21 July 2011 1,000 HZU Net Total 31,308.99

Do I include the 21 July purchase which I still hold in calculation of ACB Adjusted Cost Base? Or do I exclude it since I still hold it? I read on a sticky that I should average all purchases and multiply by the number of shares. But I do not know if it applies here, since I purchased shares after I sold all of them.
Thank you.
 

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Do I include the 21 July purchase which I still hold in calculation of ACB Adjusted Cost Base? Or do I exclude it since I still hold it? I read on a sticky that I should average all purchases and multiply by the number of shares. But I do not know if it applies here, since I purchased shares after I sold all of them.
Thank you.
NO:rolleyes2:

In this case

You can only average what you have

You can not average what you dont have

1st BUY ----> split---> sold......capital gain---->they are gone

2nd and 3th BUY----> average......sold......capital gain---->they are gone

4th buy....you stil have......no averaging to be done

my opinion
 

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I agree with Caricole.

You would have only needed to report the July 21st purchase, if you had made any additions and subtractions [or subtractions alone] to the initial investment, which in this case, it is the July purchase as all the other ones had been previously sold.

If you had made additions/subtractions however, then you would have reported as follows:

- July 2011: buy 1,000 shares x $10 = $10,000 + $10 commissions = $10,010
- Aug. 2011: buy 1,000 shares x 9 = $9,000 + $10 commissions = $9,010

ACB = $9.51 [$19,020: 2000 shares]

- Nov. 2011: sell 1,000 shares x $12
- capital gains: $12 - $9.51 = $2.49 x 1000 sold shares = $2,490 - $10 commissions = $2,480: 2 = $1,240 [x 50% x mr].

- remaining shares = 1,000
- ACB = $9.51 [remains unchanged as redemptions don't change the ACB & neither do cashed dividends that are not reinvested].

Quiz:

1. What is the remaining investment cost?
2. what would the new ACB be, if 1,000 additional shares were to be purchased this month x $8?

As simple as the answers are, I once got them completely wrong & hope to save some newbie from same [my confusion had been cleared by a brainy friend of mine].

Can anyone guess it is April? :biggrin:

Welcome to CMF xyasdglg!
 

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Discussion Starter #4
Thank you for answers

Toronto.gal
I think the new ACB is 8.75
[(1 000 * 9.51) + (1 000 * 8-10)] / 2 000 = 8.75
 

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Are you allowed to also keep them separate for tax purposes? i.e. report the capital gains on the first bunch of stocks as a separate line-item from the second bunch?
 

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Are you allowed to also keep them separate for tax purposes? i.e. report the capital gains on the first bunch of stocks as a separate line-item from the second bunch?
Of coarse, each SELL operation creates a gain or a loss on a differend line

At yearend these are all added to déclare a capital gains or capital loss for the year

Same as each BUY operation créates a new line, with in some cases another new line for averaging if same stock is already in the portfolio

my opinion
 

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Spudd said:
Are you allowed to also keep them separate for tax purposes? i.e. report the capital gains on the first bunch of stocks as a separate line-item from the second bunch?
Yes, although sale transactions do not always generate a new line item, in this case it makes more sense to report that way. Each sale completed a series of transactions that both started and finished with zero shares, so they were essentially two independent items.
 
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