# ACB from Royal Direct Investing



## thebarokd (Apr 20, 2015)

Does anyone know what the BookValue of Royal Direct Investing is missing compared to the proper calculation of ACB for Canadian Tax reporting purposes?


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## AltaRed (Jun 8, 2009)

thebarokd said:


> Does anyone know what the BookValue of Royal Direct Investing is missing compared to the proper calculation of ACB for Canadian Tax reporting purposes?


You will have to be more specific than that. Generally RBC DI's book value should equate to ACB if you purchased your securities via RBC DI, including re-invested dividends/distributions, and perhaps ROC as well (I have not checked the latter).


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## thebarokd (Apr 20, 2015)

AltaRed said:


> You will have to be more specific than that. Generally RBC DI's book value should equate to ACB if you purchased your securities via RBC DI, including re-invested dividends/distributions, and perhaps ROC as well (I have not checked the latter).


Their tax docs have a pretty big disclaimer that the taxpayer should calculate their own - I don't think I've held anything that had a Return of Capital (it would be marked as such rather than a dividend, right?)
I think the only piece i don't think the Bank's ACB doesn't include is transaction costs... but just wondering if anyone else had compared.


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## AltaRed (Jun 8, 2009)

You would have to check to see if the commish is included in the brokerage's ACB numbers. ROC happens occasionally in some ETFs and for sure with REITs. You would know it from the statement of income and expenses issued each year plus anything in Box 42 of T3 tax slips. But you have nailed it - every individual is responsible for maintaining their own ACB records. I always have done so (for decades).


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## Eclectic12 (Oct 20, 2010)

thebarokd said:


> Their tax docs have a pretty big disclaimer that the taxpayer should calculate their own - I don't think I've held anything that had a Return of Capital (it would be marked as such rather than a dividend, right?)


You should be able to confirm this by checking the T forms received ... for example, I get a summary T3 form plus a details document. On the detail document, it will list the investment and RoC parts.

For a stock that only pays dividends, I get a summary T5 form plus a details document. It also lists the investment and the dividends paid.


Another way to check is to call the company or visit the company web site under "investors" (it will usually say eligible dividends or provide a link to a breakdown of the types of income including RoC paid).




thebarokd said:


> I think the only piece i don't think the Bank's ACB doesn't include is transaction costs... but just wondering if anyone else had compared.


I don't know as I'm with a different broker ... I think the ACB includes the buy commission but not the sell commission.


Note that the sell commission is reported on Schedule 3 "Capital Gains or Loss for year ...", section 3 "Publicly traded shares, MF units ..." in the column "Disposition Costs" so it should not be included in the ACB.


Cheers


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