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What do I do with LLL -> LULU?

5K views 5 replies 5 participants last post by  humble_pie 
#1 ·
So I held LLL in my non-reg account as well as my TFSA

Looking in TDW, both have been moved over - at least I see them as "LULU".

Is there anything else I should/need to do?

I assume the only difficulty is when it comes time to sell, converting that to CAD and then putting that against my CAD cost basis? Kind of confused if I need/should do ANYTHING (my TDW has CAD and US cash accounts - i guess I should at least move it over to the US one?)
 
#4 ·
I think Kaitlyn is referring to Lululemon delisting from the TSX - http://www.bnn.ca/News/2013/6/10/Lululemon-CEO-to-step-down-stock-slides.aspx

"Lululemon also announced it plans to drop its Toronto Stock Exchange stock listing at the close of trading on June 24. Most of its trading volume takes place on Nasdaq, where it will remain. "The minimal trading volume of its shares on the TSX no longer justifies the expenses and administrative efforts associating with maintaining this dual listing," the company said."
 
#6 ·
So I held LLL in my non-reg account as well as my TFSA

Looking in TDW, both have been moved over - at least I see them as "LULU".

Is there anything else I should/need to do?

I assume the only difficulty is when it comes time to sell, converting that to CAD and then putting that against my CAD cost basis? Kind of confused


yes, you've got that right, although it's not really difficult. Plus once you've done it, you'll know how to report US trades for tax purposes forever after.

you already have your cost base in CAD. The broker has already transferred your shares into US account, so that is where they will have to be sold. When you do come to sell the shares, for tax reporting purposes the exchange rate of the day will be used to calculate proceeds in canadian dollars. In the capital gains tax report, proceeds in CAD will then be netted against cost base in CAD to calculate the gain (or the loss, as the case may be.)

alternatively, you could also use the official bank of canada average annual exchange rate for the year in which you do, in the future, sell the shares. If you choose the annual rate, it should be applied to all gain/loss transactions for that year.

if there would ever be dividends, there would be no US withholding tax for canadian shares that happen to be held in a USD account.

please note that the above are tax reporting methodologies only. What you might find in real life, following a successful sale of LULU, is that you wish to keep the US dollars in order to buy another US stock. Notice that you will have acquired USD without ever paying any FX fee, in a classic delayed gambit trade.
 
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