# Mawer Tax Effective Balanced - What do I need to track?



## latebuyer (Nov 15, 2015)

If I were to buy Mawer Tax Effective balanced in a non-registered account what would I have to track for tax purposes? The only thing i've ever held in non-registered is gics and savings accounts.


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## Eder (Feb 16, 2011)

This will answer your questions

https://www.adjustedcostbase.ca/


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## GreatLaker (Mar 23, 2014)

This documents from CRA explains in detail what you need to report:
RC4169 Tax Treatment of Mutual Funds for Individuals

I second AdjustedCostBase.ca as linked to above by Eder. It is an excellent tool for tracking your cost base.


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## latebuyer (Nov 15, 2015)

Thanks I checked out adjustedcostbase.ca. Would the initial shares and initial cost base be the same? For example, if I bought $5000 would that be the initial share amount and initial cost base. I am confused because I thought mutual funds refer to units.


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## AltaRed (Jun 8, 2009)

latebuyer said:


> Thanks I checked out adjustedcostbase.ca. Would the initial shares and initial cost base be the same? For example, if I bought $5000 would that be the initial share amount and initial cost base. I am confused because I thought mutual funds refer to units.


It is easiest to track ACB on a total share (unit) count, rather than on a per share (unit) basis because as you buy new units via re-invested distributions, or have a Return of Capital, you simply increase (or decrease) as the case may be, from the total of your initial ACB. It is ONLY when you sell a PORTION of your units (rather than them all) that you then must calculate ACB/unit....so you know your cost per unit....to subtract from the price you received per unit.


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## latebuyer (Nov 15, 2015)

Thanks, this is making more sense. It looks like Mawer Tax Effective Balanced has monthly distributions. Am I supposed to add those monthly? I'm also confused where I get this distribution information as I have other mawer funds and I don't get anything from Mawer. I see they have annual distributions, but I don't see monthly distributions on their website.

Oops just found out you would only get a t3 if it is unregistered. So basically at the end of the year I would add in these distributions?


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## AltaRed (Jun 8, 2009)

You only add monthly distributions to your ACB of your investment IF the distributions are re-invested into more units. Monthly/quarterly/annual statements tell you how much. Your ACB doesn't change otherwise (return of capital excepted which IS shown on t3 tax slips each March).


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## latebuyer (Nov 15, 2015)

Thanks. My understanding is it is not necessarily a good idea to keep savings accounts and gics in taxable accounts so I was thinking of shifting some to my tfsa. Or does it matter all that much and am I actually better having investments in TFSA and keeping gic/savings account in unregistered account? My RRSP is full but it has no fixed income so I may add fixed income there and keep some equity in unregistered.


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## AltaRed (Jun 8, 2009)

That is traditional advice, but that came about when interest rates were a lot higher and interest income was meaningful. Paying higher tax on miserly income may be better than paying a lower tax rate of higher dividend or cap gains income. It's not a slam dunk any more.


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## Eclectic12 (Oct 20, 2010)

latebuyer said:


> ... Would the initial shares and initial cost base be the same? For example, if I bought $5000 would that be the initial share amount and initial cost base. I am confused because I thought mutual funds refer to units.


Shares or units ... the math is the same. If you bought for $5K and had no costs for buying, then the initial cost for shares/units will be $5K. If there was a cost to buying, then the cost will be $5K + cost to buy.




AltaRed said:


> It is easiest to track ACB on a total share (unit) count, rather than on a per share (unit) basis because as you buy new units via re-invested distributions, or have a Return of Capital, you simply increase (or decrease) as the case may be, from the total of your initial ACB. It is ONLY when you sell a PORTION of your units (rather than them all) that you then must calculate ACB/unit ...


Depends on one's preference ... so far, selling has been almost always a portion of the total number owned so I prefer the ACB per share/unit. 

The spreadsheet for tracing cost was built to automatically use the latest detail line to automatically calculate the total ACB and the ACB per unit, making the effort the same for both.

Using other sources such as adjustedcostbase.ca may change what is provided automatically.




latebuyer said:


> It looks like Mawer Tax Effective Balanced has monthly distributions. Am I supposed to add those monthly?


Depends on whether what makes up the distributions and/or their use changes the cost. If the monthly distribution is re-invested to buy more units (adds to units plus cost to total cost) at the same time as RoC was paid (reduces cost), there may be two changes for the same $$ paid.

Here is another source for the info.
https://services.cds.ca/application...s/-EN-LimitedPartnershipsandIncomeTrusts?Open 


Cheers


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