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Can I rely on the mutual fund company to calculate ACB for determining capital gains or should I track it myself?



Our response:

The Canada Revenue Agency (CRA) generally defines adjusted cost base (ACB) as “the cost of a property plus any expenses to acquire it, such as commissions and legal fees”. The ACB is used in the calculation of capital gains and losses for income tax purposes.

The CRA has outlined rules as how to calculate the ACB, especially if you acquired units of stocks or mutual funds at different points in time. Generally, you have to average the purchase price of the investment you bought during the year and use this average as your ACB. Learn more about how to calculate the ABC of identical properties from the CRA.

While a mutual fund company can provide you with the ACB to use in determining your gain or loss, it is important for you to refer to your own investment records to calculate the ACB that is specific to your circumstances. You can speak to your financial or income-tax advisor to properly determine your ACB and calculate your gains and losses for income-tax purposes.

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