Calculating Capital Gains on Stocks Using Adjusted Cost Base (ACB)
A step-by-step guide to accurately tracking your capital gains or losses when trading stocks in non-registered accounts
Investing in securities such as stocks, bonds, and mutual funds can offer the potential for significant financial growth, but it also comes with the responsibility of understanding how capital gains and losses work. When you sell an investment for more than you paid, the profit is considered a...
Understanding Fund Distributions: Taxation & Adjusted Cost Base (ACB)
Learn how all types of fund distributions are tracked and taxed in non-registered accounts
Fund distributions in non-registered accounts involve specific tax considerations, particularly regarding how they impact adjusted cost base (ACB). Different types of distributions (including interest, dividends, foreign income, capital gains, and return of capital) affect both tax liabilities and...
Principal‑Residence Designation: ‘Plus‑One’ Rule and Future Capital‑Gain Exposure
Exploring the implications of the Principal Residence Exemption related to overlapping property ownership
As many Canadians know, the Principal Residence Exemption (PRE) is one of the most significant tools available to shelter capital gains from tax. By designating your home as your "principal residence", you can avoid paying any capital gains tax on the sale. Given this incentive, many retirement and...