# Mutual fund taxes



## Sasquatch (Jan 28, 2012)

I'm just looking for a bit of guidance wrt. to paying taxes on a non RRSP mutual fund.
I'm in the process of slowly dissolving my wife's and my own RRSP (before we HAVE to do so) and buying shares in a regular non registered mutual fund.

I'm slowly ( annually) dissolving our MAW 104 ( RRSP) and buying into MAW 105 ( tax effective bal. fund).

The 2014 tax year will be our first year to claim our MAW 105 non registered fund and I'm not quite sure how it's going to work.

Here are my questions:

1. Will the tax slips from Mawer contain all the info I need to submit to the CRA, ie. profit/loss/whatever or is it up to me to figure out the difference in NAV of when we bought and present value? I think it's called acb, I really gotta read up on that crap.

2. Can I claim the redemption fees for cashing in part of our RRSPs? 

3. Anybody know exactly what the "tax effective" moniker of the MAW 105 really means? 

Thanks in advance for any relevant comments


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## GoldStone (Mar 6, 2011)

1. Mawer tax receipts will give you all the numbers you need with respect to fund distributions made in the year. All you have to do is copy them to the right boxes on the tax return.

Note that you still have to track your own ACB. It comes into play down the road, when you start selling the MF in the taxable account.

2. The fees incurred inside RRSP are not claimable.

3. Regular balanced fund is a fund of funds. It owns 6 or 7 Mawer funds. If one fund suffers losses, the parent balanced fund cannot apply them against the gains in another fund. Tax effective fund owns stocks and bonds directly. Direct ownership gives them more opportunities to offset gains and losses.


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## Sasquatch (Jan 28, 2012)

Thanks for the info ! 
I guess I'm going to have to start reading up on that ACB sh*t to avoid surprises when we eventually cash out our non reg funds!


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## My Own Advisor (Sep 24, 2012)

You can check this out for ACB:
http://www.adjustedcostbase.ca/


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## Sasquatch (Jan 28, 2012)

My Own Advisor said:


> You can check this out for ACB:
> http://www.adjustedcostbase.ca/


ame site
Great minds think alike ;-) I did some surfing for "ACB tracking" yesterday and came across the exact site you mentioned. 
I registered and set up our portfolios and transcribed all relevant data. 
It is very easy to use and that's a load of my mind. 
I'll update them a couple of times a year and all will be good. THANKS HAPPY HAPPY


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## GoldStone (Mar 6, 2011)

Mawer 2014 distributions
http://www.mawer.com/mutual-funds/performance-and-distributions/distributions/2014-distribution/

Reinvested distributions affect your ACB. Roll up the sleeves and do the work.


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## Sasquatch (Jan 28, 2012)

GoldStone said:


> Mawer 2014 distributions
> http://www.mawer.com/mutual-funds/performance-and-distributions/distributions/2014-distribution/
> 
> Reinvested distributions affect your ACB. Roll up the sleeves and do the work.


Thanks, I was not aware that Mawer had this info available. Live and learn.
However, I got the monthly distributions of our MAW 105s from Scotia I trade and plugged them into the ACB site's portfolio. A little more work but I hope it does accomplish the same thing.
BTW I assume that distributions are the same as dividends, which I have re-invested automatically. I treated them as dividend re-investments.


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## GoldStone (Mar 6, 2011)

Ah yes, balanced fund distributes monthly. I forgot.

You can treat reinvested distributions as reinvested dividends, as long as they don't include return of capital (ROC). As far as I know, Mawer funds do not distribute ROC because they never pay out more than they earn.

BTW, I checked my Mawer ACB at TDDI. It matched the ACB that I track in Quicken. That got me thinking... is it really necessary to track your ACB? Perhaps you can rely on Scotia records? 

I track all my transactions in Quicken in any case, so I get ACB tracking for free.


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