# ACB question



## Spudd (Oct 11, 2011)

In my personal non-registered account I hold XIC. I just opened a joint non-registered account with my husband and bought XIC there as well. 

Do I track the ACB as a whole across the 2 accounts, or should they be tracked separately since my husband has 50% of the CG on the joint account?


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## AltaRed (Jun 8, 2009)

Your ACB is the weighted average of XIC shares in your personal account and your share of XIC shares in the joint account. Your husband's ACB is based solely on his 50% share of the XIC shares in the joint account. It is not the accounts that matter, it is the ownership of the number of shares that count.


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## Spudd (Oct 11, 2011)

Thanks!


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## Silverbird (Mar 5, 2013)

For the Joint account, who contributed the funds?

That determines the ownership it's not automatically 50/50.

As an example, in a single income household, where a spouse is making $0 a year forever, the CRA may have an issue if you allocate 50% or 100% of the joint account income to him/her as they would not have had the capital to purchase the investment


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## AltaRed (Jun 8, 2009)

Very good point. I had made the assumption the couple was funding the joint account equally with traceable paperwork back to source.


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## Spudd (Oct 11, 2011)

Yes, good point indeed, however it is 50/50 in this case.


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## Eclectic12 (Oct 20, 2010)

I defer to those more knowledgeable for the split.

Sorry for repeating if you are already aware of this but as a lot of people seems to miss it - don't forget as part of your ACB calculations to take the return of capital (RoC) portion into account, which reduces XIC's ACB by the matching amount. It isn't huge amounts but it has been consistently part of the distribution for the last twelve years.

http://ca.ishares.com/product_info/fund/distributions/XIC.htm

I'm not happy that the Tax Tips web site refers to the RoC as "not taxable" when for the small amounts paid by XIC it's tax deferred but it is one of the most complete explanations.
http://www.taxtips.ca/personaltax/investing/taxtreatment/etfs.htm

Between that as well as the Non-Eligible dividends, Other Income plus the Foreign Income - I decided to avoid the bookkeeping hassle as well as these income types that are higher taxed by moving XIC into my TFSA.


Cheers


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## Goodgenie4u (Oct 6, 2014)

*Tracking ACB in Joint accounts and Gain / Loss Reporting*

BCE shares held in two separate accounts when moved to a broker were put into one account and all went under my Social Insurance number and that's what the CRA sees. That said when I filed our taxes we showed the percentage split on my taxes and hers. Given all the impacts of spin off's and consolidations not to mention DRIP over 40 years, it has been a miserable exercise tracking the ACB. That said there is light at the end of the tunnel. We have all the paperwork and the Compushare and total incoming number of shares to the broker have been reconciled. I have a very simple spread sheet that does the computation. 

The problems remaining are meeting CRA requirements on various fronts. Could use some advice on a few things

(1) When I log into "My Account" at the CRA for the first time (after taking a simple tax course) I saw a section about Carried forward Gains /Loses.
They were from 2003 to 2013. QUESTIONS
(a) are the $ values in the gain and loss columns for gains and loses from 2003 to 2013 or are they from as far back as when I started filing taxes. 
(b) did these numbers result from what Compushare or the broker have been issuing to the CRA in those years.

(2) I cannot remember, (but I need to audit this based on your advice) whether I missed out reporting on loses or gains starting in 1976. QUESTIONS
(a) Once I discover any unreported losses of gains say in 1978 and 1989 do I have to report these and if so what is the process, assuming it is a manual form.
What I mean? Does this require me to just show just the gain or loss and the CRA determines the tax implications for that year?
(b) For reporting gains and loses not reported in past years, what is the required CRA process (form numbers?) so that I submit them in full compliance?

I searched the CRA site and clearly I failed to get guidance that I was certain would address my needs. Any advice on the aforementioned will b most appreciated.

Thanks
Dennis


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