How to Track the Adjusted Cost Base (ACB) of Your Asset Allocation ETF
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- เผยแพร่เมื่อ 7 ก.ย. 2024
- One of the most complicated and tedious tasks you get to do as an investor is to calculate the adjusted cost base (or ACB) for each security in your taxable accounts.
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I can't believe no one warns you about this (at least if you're not from the finance world). This seems like a pretty big deal, you'd think there would be red flags/popups/notifications everywhere when someone opens a non-sheltered account. Thanks a lot for this info Justin. Hopefully will help me walk through (thankfully only) the past 2 years of transactions
Thank you for providing these step by step walkthroughs! This is essential information.
@brian4137 - You're most welcome! :)
I wish I'd known this before I opened a margin account and bought about 10 ETFs in there...
Thanks for the great video!
This is one of the most useful videos I have found in my investment journey. It's bookmarked with a big star next to it. Justin, thank you for helping the Canadian investment community. Kudos for your work!
@Bruno Alves - You're very welcome! (I'm glad you found it helpful :)
Thanks much! Really appreciate the step by step videos you've produced year after year. I had never understood how to add the distributions / phantom distributions. The video made it easier for me than the ACB white paper. Only 4 years of distributions on 5 ETFs to start with!
You PWL folks are just amazing. Ty
@john smith - Thanks! (you're making us all blush ;)
I have been helping my aging parents portfolio and taxes. This video has been a huge help when it comes to tracking their ACB and filing. Thank you! 🙏
@Leo Kenner - We're so glad to hear you found the video helpful when tracking your parents' ACBs - thanks for watching! :)
Thank you!!! These step by step guides are so valuable!
@Daniel J - You're very welcome!
Hi Justin, thank you for another great video. I have a related question. Can we use the same approach to calculate ACB for individual shares held in a corporation margin account?
your step by step guide was very useful. I had no idea how to calculate ACB and you made it easy!
@Sportssteelstunners - We're so glad to hear you found the video useful! :)
@@JustinBenderCPM Hi Justin. Actually I have a question. I am using DRIP and usually there is some money left over deposited to my unregistered account (say $10-20 per quarter). How do I keep track of the money going to my unregistered account? Thanks.
Whew! Complicated process put well-simplified. Thanks.
This is a great video. This might be a naive question but this is only of relevance once you decide to sell and take capital gains correct? Another question. If you do this every year, and decide to sell this in a say 10 years, how do you reconcile/incorporate all the 10 excel sheets?
@Fabian Yu - Correct, but you likely don't want to be updating your ACB after 10 or 20 years of holding an ETF ;)
Each year you export the AdjustedCostBase.ca spreadsheet, it includes all the past years' data updates as well.
thiz is better than my licensing text book. lol
Awesome and informative video Justin! I found that some ETFs don't use the "RATE" method in their T3, and instead use the "PERCENT" method. I believe this might only apply if the ETF didn't have any NonCash distributions and only had ROC distributions. In this case, I think you have to take the percent and multiply it by the total distribution to find the actual dollar per share figure.
@_s_k_ - Yes, some ETF companies (like BMO) use a slightly different methodology. The ROC figures are percentages of the cash distribution, so you need to multiple the percentage by the total cash distribution to determine the amount to plug-in to adjustedcostbase.ca.
Justin - this is another awesome video and I appreciate you again since NG!
Thank you for this video. It makes things a lot easier to understand. However, I'm wondering if someone didn't track this how much extra tax would they owe in the current year based on this example?
Thank you so much for this great video. I opened a non-registered account for the first time and was able to track everything following this video. As a newbie, I just have a question about reporting when I do sell our holdings, all -in one ETFs, likely in a few years. If the capital gains shown on the T3 doesn't reconcile with my own calculation having tracked the ACB, how do I report that on my taxes?
@snb8003 - The capital gains shown on your T3 are from capital gains distributions (these are occasionally paid by the ETF to unitholders at year-end) - you should simply report these as is. These T3 capital gains are separate from any capital gains you report from ETF sales on Schedule 3 of your tax return.
Excellent video! Tracking the ACB of ETFs is such a pain. That's why I only hold ETFs in my TFSA and RRSP accounts. I hold some mutual funds in my investment account and my discount broker tracks the ACB. Since these mutual funds do not have phantom distributions, I can just use the ACB provided by my discount broker. Am I doing it correctly? Thanks!
Great video 👍🏻
Is there a CDS equivalent for US listed ETFs?
I am opening up a corporate trading account and this will be invaluable to me. Thank you as always for these great tools. Also, I've been told that my accountant would track ACBs for me, but I'm skeptical regarding accuracy. Do you have any experience with clients having this done improperly by their accountants? I'm worried they would just look at the ACBs reported by my brokerage.
@Jan Padzik - I'm glad you found the video helpful :)
From my experience, our clients' accountants expect our firm to track the book values of their securities, and provide them with an accurate realized gains/losses report each year for tax purposes. So if you're a DIY investor, I would assume they would also expect a realized gain/loss report from you (but you should check with your accountant to confirm).
Thanks, Justin. That was helpful, but this process is brutal and, I believe, hard to understand for the average DIY investor like me. Some smart person has to come up with an automated process.
@galaxytrio - I completely agree - it's not the most intuitive process for taxable DIY investors (but a necessary process nonetheless).
Thanks, we bought VEQT this January.. for reference next year if we only used the 2020 distributions for example would the only transaction we'd put in ACB would be ROC?
@W K - If you bought VEQT in January 2021 (and held it throughout the year), there may be ROC and reinvested distributions to update for the 2021 tax year (this will not be known until around February/March 2022). This is in addition to any purchases, sales and DRIP transactions.
I wonder if it's possible for someone to look into each major brokerage and determine which brokerages aren't calculating this correctly. My hunch is that brokerages have gotten much better at this and are adjusting your cost basis accordingly. At what point do we draw a line in the sand and determine that calculating this manually is no longer required?
@Sahill Mohan - I would never assume the brokerage has completed this task properly each year - they can (and will) make mistakes from time-to-time. If you follow the steps in this video, at the very least, it will be a good double-check of their figures.
Issues can also arise when an investor switches brokerages part way through the year. Any ACB updates from the new brokerage will not take into account distributions that occurred during the year at the old brokerage prior to the transfer (so the investor will need to have their brokerage update their book values manually).
Transferring securities in-kind from an individual account to a joint account with your spouse can also cause ACB reporting errors.
Great breakdown!
One question. Do you input the Capital Gains Dividend the same way you would input the Return of Capital at the end of the year as shown in the video?
First, thank you Justin for such and amazing work! As for calculating the ACB, I was told my accountant and by Revenue Canada that the T3, T5 and T5008 slips capture all the transactions in the taxable account and that there is no need for an additional calculation of the ACB as stated here. Would you kindly comment on this?
@Kijiji Kijiji - You're very welcome! Unfortunately, your accountant and Revenue Canada are wrong (please feel free to provide them with a link to this video for their information).
Although the Summary of Trust Income (which generally accompanies a T3 slip) includes the return of capital figures, the taxpayer is still responsible for accurately updating their book values with this information (their brokerage may or may not do this accurately for them).
And although capital gains are also included in the Summary of Trust Income, it does not indicate whether these capital gains were paid in cash or reinvested (same goes for other types of income that may have been reinvested). Visiting the cds.ca website every March/April to obtain this information is the best method for ensuring the accuracy of the inputs.
Excellent resource, Justin! At 6:35 you point out that per-share input is possible, but recommend using total for buy transactions. I've always entered per-share values with the commission field filled out, and I've always just assumed this is equivalent to what you showed in the video. Can you elaborate on the reason for your recommendation? Thanks!
@anothercrappypianist - You can also use per share values as well (as long as you include the commission). I try to provide less options for this process, or it tends to bog investors down even more ;)
Hi Justin. Thank you so much for this video. I have one question that would like to clarify. I started my portfolio fairly small and keep investing every month. For example, I buy 2 shares of VFV every month. By the time I get my dividend, I do not have enough funds from the dividend to buy another share to invest back in VFV. I would leave the money in my account instead and use that money to contribute to another share of VFV or other ETFs in my portfolio. In that case, how should I enter this dividend distribution since this is not a reinvested dividend. I am just a little confused about what to do with this small amount of dividend that is not enough to purchase another share. Thank you.
@Mary Tang - if you don't purchase any new shares with the cash, no ACB adjustments are required, as there were no purchases (but you may need to adjust the ACB for return of capital and reinvested distributions in February/March each year, as discussed in the video).
Thank you so much Justin!
RE: ROC - if I buy VGRO in Q3, do I need to add the ROC from Q1 and Q2 to my ACB?
no
Hey Justin, I'm confused about something. Isn't your example here for the 2020 tax year? How come you includes transactions from 2021 when calculating ACB?
Or I suppose since you're doing this entry every March , you're just including any transactions from March 2, 2020 to March 1, 2021? And repeat that way every year?
Wouldn't it be simpler to just do entries from Jan 1, 202x to Dec 31, 202x every March?
@Michael Sela - great question! The distributions paid in January of 2021 were actually part of investors' taxable income in 2020 (they are also included on the CDS.ca 2020 reports, as their record date is in December 2020, even though their payment date is in January 2021).
I decided to include the January 2021 DRIP in the calculations as well so there wasn't a missing "2020" distribution.
@@JustinBenderCPM Thank you Justin. So when I look at my Documents in eServices on my TD Account, I am safe to include all DRIP and Distributions from all documents from Jan 1 to Dec31, or is there any casewhere i need to look at activity in the following calendar year?
@@michaelsela5451 For DRIPs, buys and sells, you can update these from Jan 1 to Dec 31 (for any that settle within this timeframe). For ROC and reinvested distributions, these should be updated in March of each year for the prior year, using data from the CDS.ca website.
Thanks so much!
Wouldn't ACB just be 'book value '?
Trying to wrap my head around Statement of Trust Income Allocations and Designation for VCN.... the example you had in the video was super clean (meaning that line 21A was equal to Total Non-Cash Distribution R16Box.... where I am puzzled if you look at VCN for Q4 the non cash distribution (R16box) is lower than Capital Gain (line 21A)... how is that possible ? (not an accountant here so any simple insight you have would help)... but more importantly I just want to confirm that no matter what BoxR16 still the valid box to use for the adjustment of the ACB. Thanks for input.
@SuperZythum - For VCN's 2021 tax breakdown, the total non-cash distribution at year-end of 0.23545 per unit is less than the capital gains in box 21 of 0.23591 per unit (for a difference of 0.00046 per unit). This means that capital gains of 0.00046 per unit were distributed to unitholders in cash at year-end, vs. capital gains that were reinvested at year-end of 0.23545 per unit. Investors must still pay tax on the full amount of capital gains (i.e. 0.23591 per unit), but the majority of the distribution was reinvested and not paid in cash.
To clarify, "T3 Box No. / R16 Box No" are the titles for the tax slip numbers/letters that are included below them. Any entries included in the "Total Non Cash Distribution ($) Per Unit" row must be multiplied by the number of units held on each respective record date, and these amounts are to be added to the cost base.
I was looking at the CDS spreadsheet for ZCN ("BMO S&P/TSX Capped Composite Index ETF") for 2020 and it's reporting 8.93806 as Return of Capital for each quarter. Surely this is wrong?
@anothercrappypianist - Great question! You may have noticed that my video only makes reference to iShares and Vanguard asset allocation ETFs (which report their tax breakdowns as per unit dollar figures). BMO ETFs report their tax breakdowns as "percentages of the total cash distribution". So in this case, the "8.93806" return of capital (ROC) figure is actually a percentage of the total cash distributions of $0.19 per unit. To calculate the per unit dollar figure of the ROC, just multiply 8.93806% (or 0.0893806) x $0.19 total cash distribution, giving you $0.01698 ROC per unit (for each quarterly distribution in 2020).
@@JustinBenderCPM brilliant, thanks so much Justin. And, indeed, now I can't help but notice the "Calculation method" field is set to percent on the spreadsheet. :)
You make it very easy. One question, do you start a new one every year or carry on the exsisting one?
@Pat Lachance - You would carry on with your existing inputs from the prior years.
Hi Justin, thanks for this video. Could you make a video on foreign income tax credits for taxable accounts and if/when it applies to these asset allocation etfs? I couldn't really find much info online. I believe if you receive >$200 of foreign income, then you can fill out the foreign tax credits form. But as I understand it, you need to fill out on a per country basis and asset allocation etfs don't usually tell you the country breakdown of the dividend. e.g if you have substantial VIU holdings(or any of the vanguard asset allocation etfs) in non-registered accounts, how do you find out the split of how much dividends each country provided?
@supernumex - Most asset allocation ETFs distribute foreign income, so the foreign tax credit would be relevant if you hold these ETFs in a taxable account.
For international equity ETFs (like VIU), I tend to select "other" for the country of income origin when preparing my tax return (but I would recommend checking with your accountant to determine their preferred method).
Hey Justin, thanks for always being there to hold my hand through these tricky diy investing steps! I can't seem to get the CDS spreadsheet to work, is there somewhere else the Record Date, Total Non Cash Distributions, and Return of Capital can be found?!
@Steve T - are you having issues enabling macros in Excel? If so, try following these steps: support.microsoft.com/en-us/office/enable-or-disable-macros-in-office-files-12b036fd-d140-4e74-b45e-16fed1a7e5c6
@@JustinBenderCPM YES! But I was trying to open the file with Google Sheets as I don't have Excel. It says the same thing about enabling Macros and I couldn't figure out how to do that for Google Sheets... Anyway, maybe I need to just get Microsoft Excel?
@@JustinBenderCPM the computer at work has Excel, so I managed to bring the spreadsheet up! Thanks so much. I've said this before, but you guys, and Dan, deserve almost all the credit for my financial literacy 👌🏼
@@stevet7784 - If you can't find the answer online for Google Sheets, you may have to just get Microsoft Excel :(
Hi Justin. Can you make a video about REITs? Do you recommend REIT ETF? I love dividends and think REITs is a good passive income. What do you think?
@ivanavalente - I can certainly put the REIT topic on my list of videos to create. I don't have any issues with investors adding a small amount of REITs to their portfolio, but I don't think it's necessary. Most investors would likely benefit from a simpler portfolio (such as a single asset allocation ETF).
Hi Justin! New subscriber here, and wanted to thank you for making this informative video :) Since I'm very new to the investing game, I do have a couple of novice questions after watching this...
1) Is tracking the ACB only applicable to ETFs w/ bonds? Asking since the title of this video has "Asset Allocation ETF" in it. (For ETFs, I'm currently holding ARKK, VTI, VOO, & VT - and I don't think any of these are Asset Allocation ETFs)
2) Is tracking the ACB only necessary if I hold individual stocks and/or ETFs w/ DRIP? Do I still need to track the ACB if I hold stocks that don't pay out dividends or stocks and ETFs that do but w/o DRIP set up?
Thank you!
@Carina - Welcome to the channel (and thanks for subscribing)! In regards to your questions:
1) ACB tracking in taxable accounts is also relevant for equity ETFs, fixed income ETFs, etc. However, this video is specifically for Canadian-based ETFs (not U.S.-based ETFs, like VTI, VOO or VT). For these ETFs, you would need to determine the cost base in CAD by converting the USD purchase price, using the Bank of Canada FX rate on the settlement date of the trade.
2) Tracking the ACB is necessary in a taxable account, even if you don't have a DRIP set-up on the security. However, if it's a U.S.-based ETF or stock, there may be less transactions to track (unlike for a Canadian-based ETF, where you may have return of capital and reinvested distributions to account for).
@@JustinBenderCPM Thank you for clarifying!
Hi Justin, if DRIP was not enabled, what Transaction Type should it be for a distribution? Should it be entered as a Capital Gains Dividend?
@brian4137 - Cash distributions not reinvested should not be entered separately (the return of capital and reinvested distribution component are taken care of by following the steps in the video).
Question, Does capital gains distribution effect adjust cost base?
When capital gains is received as a dividend distribution do you treat it like ROC?
@Tony Mazz - If you receive a capital gains distribution, but it is not included as a "non-cash distribution" on the relevant cds.ca spreadsheet, no ACB adjustments are required.
I hold many ETFs (HXT, HBB, XEF, HXS, VCN...) and TD E Series mutual funds that I've owned for many, many years in taxable accounts. It would be a colossal task to go back and calculate the ACB for each one myself. When I've sold in the past, I've relied on my brokerages's Book Value calculations and whatever showed up on the tax slips to calculate capital gains or loses. I generally pay minimal if any transaction fees. How costly of a mistake do you think I've been making? Is it worth putting in the work for the ETFs and mutual funds I continue to hold?
@Martin Mendes - Although I can't determine the extent of any tax cost created by not accurately tracking your ACBs (in your particular situation), I would strongly encourage you to start doing so now, especially on ETFs like XEF and VCN (which tend to distribute reinvested "phantom" distributions from time-to-time). It's probably not as big of a deal for ETFs like HXT, HBB or HXS (or the TD e-Series mutual funds).
AdjustedCostBase.ca provides a premium service that makes the task a bit easier (I personally use it, and find it extremely helpful):
www.canadianportfoliomanagerblog.com/easier-than-acb/
@@JustinBenderCPM Thanks. I will get on that using your video. Appreciate your help.
Justin, big thank you for this, I'm more confident now to invest in a non registered account. That being said, would investing in an all in one swap based ETF like HGRO from horizons make this job easier? Since there are no distributions?
@Marcello Nesca - HGRO does unfortunately distribute income. Check out the CDS.ca site for 2020 - there is a ROC adjustment for HGRO in 2020, as well as other various taxable distributions (capital gains and other income).
Are all transactions also used in future tax years when filing taxes? For example, when filing taxes in 2022, would I still need to continue to use transactions from 2020, 2021 when calcuting taxes for dispositions in 2022?
@R E - All past ACB updates will impact the current year's book value (and therefore the capital gain or loss to include on your tax return). So you should update the ACB of all ETFs held in your non-registered account in March of each year.
Thank you for such a helpful video! After calculating my Reinvested Capital Gains Distributions and Return of Capital for my ETFs, my head is definitely spinning. I'm sorry if this is a silly question, but I just want to be sure that I'm not missing anything - just to confirm, you don't need to include total cash distribution in your ACB calculation? Does that go on a tax slip? I have a CCPC and my corporate year end is Sept 30th so I want to make sure my accountant knows what cash distributions I have so if it normally comes on a tax slip for the calendar year then that doesn't line up with my corporate year. Thanks!
@Stephanie -You're very welcome!
Any income from an Canadian-listed ETF's cash distribution will be included on a T3 slip at tax time (the total cash distribution is not relevant for ACB tracking purposes).
Corporations with non-December 31st year ends are always tricky for accounting purposes - you should chat with your accountant to see if they require any additional information from you (other than your monthly investment account statements, gain/loss summary, and the T3 slips when they become available)
@@JustinBenderCPM Thank you!
I have one more clarification question if you don't mind - in the video, you advised to use the Activity section of Monthly Account Statements to record some of the ACB tracking. I purchased some VEE in February 2022 and my account statement says the date of the buy was Feb 22, 2022, but the confirmations for the transaction say that the transaction took place on Feb 17th and settled on Feb 22nd. Which date should I be using for record keeping? Thanks again.
@@Stephanie-du1ef - The settlement date of the trade should be used for ACB tracking purposes (which would February 22nd in this case). Good luck!
Thank you for this video.
@YouRex - You're very welcome :)
Thanks for your very useful video. As a Canadian, should I do ACB for the US securities? Or this applied to the Canadian securities only?
@Refaat Makkar - As a Canadian, you're required to track the cost base of any U.S. securities in Canadian dollar terms (so you need to find the FX rate on the settlement date of each purchase and convert the U.S. cost to Canadian dollars)
@@JustinBenderCPM appreciate your clarification. Do we need to track ROC and adjust the cost accordingly? or FX is enough. As the brokers don't adjust the cost so if I don't adjust it, it will end with paying more taxes, which I think it's better than tracking each single security. Can I count on this?
@@Pharaoo2012 - Generally, for Canadians holding U.S. securities, ROC is considered taxable income (and you don't adjust the cost base downwards for any ROC received): www.taxtips.ca/personaltax/investing/taxtreatment/shares-of-corporations.htm#:~:text=Distributions%20made%20by%20foreign%20non,fully%20taxable%20to%20Canadian%20taxpayers.
Surprised you say at the beginning of the video that sales of the security impact the ACB. At least for the ACB/share, I have always understood that sales transactions are excluded from the calculation. If, in this example, you had sold 5000 shares instead of the entire position, the ACB/share of the remaining position does not change from the ACB/share before the sale. Right? Am I missing something?
@RL Bee - As mentioned in the video, sales reduce the adjusted cost base. However, sales do not reduce the adjusted cost base PER SHARE. If only 5,000 shares were sold at the end of the period, the adjusted cost base PER SHARE would not have changed.
Hey Justin, thanks for the informative video. I know ETF investing is the name of the game in this channel, but how different would the ACB tracking/inputting process be for stocks instead of ETFs? In particular, how would the steps at 3:30 differ when dealing with stocks? I ask because the Tax Breakdown Services section of the CDS website only offers Excel sheets for ETFs. I was wondering how I may be able to find these information when it comes to stocks instead. Thanks.
@Nico H - In most cases, stocks don't have return of capital or reinvested distributions (so it's usually much easier). You do have to watch out for other weird things though, like company spin-offs (you can check the company website to see if there has been anything out of the ordinary).
@@JustinBenderCPM thanks for clarifying! Appreciate the response.
Is it necessary to calculate the ACB when doing Norbert's Gambit? Also, is there a US equivalent to the CDS website for US-listed ETFs to get info on reinvested distributions/RoC
TheHockeyExpert31MTL - If you're implementing the Norbert's gambit strategy in a non-registered account, then you will need to calculate the ACB (although you will just need to convert the purchase price or sale proceeds of DLR.U to CAD, using the FX rate on the settlement date T+1).
Canadians can't claim return of capital on U.S. securities, so there's no need to make this adjustment. I don't believe reinvested distributions are common in the U.S. (this process is for Canadian trust units, like Canadian-based ETFs).
Justin, I noticed Bond ETF funds, such as ZDB, have Return on Captial every month. I've noticed that non-cash distributions are also present. Is this common for bond etfs? Is the ACB calculation treated the same as the stock etfs in your example?
@Yev Kasseem - It's fairly common for bond ETFs to distribute ROC and to have reinvested distributions (the calculations are treated the same as the asset allocation ETF example from this video). This video shows the process for tracking the ACBs for Vanguard and iShares ETFs. BMO ETFs have a slightly different process - their CDS.ca tax breakdown information is provided in percentage terms, so an additional adjustment is required to convert these figures to a dollar per unit figure.
Hey Justin
I received a T5008 from my bank, but was told I should not expect a T3 because the investment was not in mutual funds, which is true as I only invested in VGRO in my TD Cash Account. Do I create my own T3 or just submit the data from my T50008 on tax returns?
@Michael Sela - If you held VGRO in your non-registered account at TD Direct Investing (and you received any distributions from the ETF during the year), TD DI will definitely be sending you a T3 slip for the income (it usually is available by mid-March).
You may need to download the slip electronically from the TD DI website (if you signed up for electronic delivery).
I have followed your steps in tracking the ACB of my taxable investments, but some of the ETFs I have show a high number under Return of Capital. For instance, the Statement of Trust Income Allocations and Designations for ZWG shows a ROC of 51.01814 per quarter. How is this possible when the ROC is usually 0.000 something for other ETFs?
@J. Mirza - The process is slightly different for BMO ETFs. That "51.01814" figure is actually a percentage (i.e. 51.01814%). It indicates that 51.01814% of the total cash distribution was designated as return of capital. To figure out the dollar figure, just multiply the percentage by the cash amount for each distribution.
@@JustinBenderCPM Thank you so much!!
Hi Justin! I find the adjustedcostbase website to be quite clunky. Couldn't all that be accomplished in excel with a few formulas and calculations? You don't happen to have such a template do you? For the excel-savvy among us?
@Mark Hermann - I don't have a specific spreadsheet that accomplishes this task, but it's relatively straight-forward to create one for yourself if you have adequate Excel skills.
Hi Justin, I'm in the midst of doing taxes. I noticed that quarterly with Scotia iTrade, my Vanguard and iShares ETF's produce a Distribution. I have been following your guide for the past few years, adding my buys, sells and distributions on the website quarterly from my monthly statements. Then in March each year, I add the RoC and Capital Gains Distrubutions calculated from the downloaded spreadsheets.
I just received my T3 and noticed that they break down the quarterly distributions and it already include the RoC each quarter, so it seems like I have been double counting this transaction all this time. More specifically, the total distribution that is deposited into my account quarterly includes: RoC + Quarterly Capital Gains Div + Foreign Income + Actual Elig Div + Other Income - Foreign Tax Paid. Have you seen this before? Is it common or am I reading it incorrectly? Does that mean I need to go back to the website and remove the duplicate RoC transactions?
@kasmca - Your T3 slip indicates the sources of investment income to include on your tax return (the ROC that is included on this slip will not magically double-up your separate ACB tracking).
If you followed the video correctly, you should be fine (the T3 income needs to be inputted on your tax return, not in adjustedcostbase.ca).
@@JustinBenderCPM Thank you, that makes sense. I have been entering the quarterly distributions because I DRIP my investments. I noticed that the distributions themselves will not affect my ACB, only when the Buys on the DRIP happen. Therefore, it makes sense that I still need to add the ROC as separate transactions as per your video. Thanks again. Your videos are always insightful and of high quality.
THANK YOU!!!
Is there any way to access these tax breakdown sheets without MS Excel?
@Ryan - Unfortunately, MS Excel is the main program required to access the CDS.ca spreadsheets.
Do ROC and redidtributed dividends it apply to single stocks like Apple?
Also how to do for US etfs like ARKK and QQQM?
i still expect the broker to attempt it. after all, if I have only one broker, your argument is broken.
they are lazy and you are covering for them
it's not really a matter of a bank being better or worse than you, as it's just applying a formula.
Its a trivial matter in code that will save a lot of human hours
not to mention you can potentially weighted-average 3 ACBs across brokers.
@K. Ali Pardhan - I have no vested interest in "covering" for Canadian brokerages - I am simply letting investors know that brokerages suck at tracking ACBs (so you can't trust their figures).
Good luck though...you're going to need it.