So with tax time coming around again, I've started doing a little research into determining capital gains. I've only now realized after doing taxes for decades that your T3s and T5s don't in fact include capital gains from sales of stocks but only track disposition of stocks inside the trust of the mutual fund. After speaking with many friends and family, this is apparently news to them too. Luckily I've never sold shares in the past.
Is this even right? Am I really supposed to keep track of my adjusted cost base every week from my preauthorized purchase plan for a possible 30-50 years before selling my non-RSPs? Why doesn't my mutual fund company track my ACB for me? If this is true, I don't know anybody that tracks this.
Somebody please enlighten me.
Yes, you know all those T3s you got over those 30+ years that reported return of capital on distributions
there are i believe different methods you can use, i would ask a tax professional and bring in the shoe box of t3 slips. T5008s are for stock capital gains. Most of the time you have to keep track yourself and report to CRA manually.
There will be a box on the T3 that represents a return of capital. The ROC amounts reduce the ACB of the of the mutual funds you hold in that trust. You have to take the ROC amounts into account when determining the eventual gain or loss on a mutual fund dispostion.
Your brokerage should give you a year-end trading summary that should give you a starting point for reporting your gains and losses. Please note though - the gains or losses it shows are often incorrect as they don't track things like average cost. They are usually good for the proceeds part, but use your own ACB's.
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