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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: Pied Piper who wrote (287)	11/29/2000 11:48:28 AM
From: PMS Witch	Respond to of 548

ACB or Average Cost Base ... In Canada, the same class of securities are held at an average cost. This average cost must be adjusted when you buy, sell, split, and change securities through mergers and such. Again, a tax guy can help. Some other countries allow you to choose which shares you're buying or selling, but not Canada. Here, you MUST use the average cost method. In your examples, you made a profit. The 30 day rule applies to losses. Cheers, PW.

To: Pied Piper who wrote (287)	11/29/2000 12:15:00 PM
From: Kayaker	Respond to of 548

3. Suppose I sell a position for a profit and a few days later the price tanks. I decide to buy back in. Do I need to buy back the dollar amount of my proceeds or just the number of shares I sold, in order to avoid a tax bill? In the above, you sold for a profit so you have a tax bill. Nothing you do after that affects that profit or the tax to be paid on it. PW has given much good advice. Most importantly, as she says, get yourself a decent accountant! You'll save yourself a lot of grief in the long run. I just spent $200 yesterday for a ½ hour appointment with a high level accountant who roams around taking the tough questions encountered at the smaller accounting firms. Worth every penny!