# Figuring out ACB and capital gains/loss when initial cost unknown



## yyzvoyageur (Apr 10, 2009)

Working on a deceased relative's tax return and I'm running into a bit of an issue. He had shares in a handful of companies with a total value of only about $15 000 when I sold the shares. The problem is I have no idea when, or at what price, he had purchased the shares of three of the companies. I have records going back to 2004 and the broker has been anything but helpful in figuring out when the shares were purchased.

Right now I'm considering using the prices from his earliest records from 2004. For two of the three companies that would give him a capital gain; he would incur a capital loss on the third stock.

Do you have any other suggestions or similar experiences?


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## Square Root (Jan 30, 2010)

i have the same issue with my mother. It's funny, she kept bank statements for 30 years but hasn't a clue when she bought the shares or the price she paid. I'm going to guess at the cost (when we sell) pay some tax and hope for the best.


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## yyzvoyageur (Apr 10, 2009)

Square Root said:


> i have the same issue with my mother. It's funny, she kept bank statements for 30 years but hasn't a clue when she bought the shares or the price she paid. I'm going to guess at the cost (when we sell) pay some tax and hope for the best.


Must be quite common. I figure if CRA has more information than I do, they can feel free to alter the return. Otherwise, those are the numbers they're getting. It looks like, in my case, they'll be getting some tax revenue out of it anyhow.


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## andrewf (Mar 1, 2010)

I imagine they'll do a sniff test and only bother with a detailed audit if the sums involved are large enough.


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## Charlie (May 20, 2011)

sounds like a reasonable enough approach.

At worst, you're underpaying tax by about $3500. (assuming taxable income at top rates and negligible acb). So save a $5K in the estate until you get the clearance certificate and be done with it.

If they're dividend stocks and you have past returns you may be able to trace back to when the dividends started and calculate ACB on market price back then-- all depends on whether that info is available and worth the effort. Your call.


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