ACB Tracking - The Adjusted Cost Base Calculator for Income Trusts and Closed-End Funds

This unique website application was created to make it easy for Canadian accountants, investment advisors and investors to calculate the adjusted cost bases of income trusts, closed-end funds, split share corporations, and exchange traded funds.

Canada Revenue Agency requires investors to accurately calculate an adjusted cost base (ACB) for tax purposes when these investments are sold. A very large percentage of income trusts and closed-end funds pay monthly distributions that include an amount that is a tax deferred return of capital (ROC). Each of these ROC amounts reduces the ACB of the investment and must be accumulated to arrive at the accurate ACB used to calculate the capital gain or loss upon disposition. Tracking the ROC amounts is an extremely tedious and time-consuming process.



We have the distribution and ROC data on over 700 income trusts, closed-end funds and ETFs, and are adding new funds as they are created. You simply enter your buys and sells, and ACB Tracking quickly and accurately calculates the adjusted cost base taking into consideration splits, consolidations, mergers, and phantom distributions. Phantoms add to the ACB – you definitely do not want to miss these!  Developed by investment professionals averaging over 30 years of experience, our website can be used with ease and confidence.
On October 31, 2006, the Finance Minister announced his plan to change the way most income trusts and LPs were taxed. On December 31, 2010, the ability of SIFTs (Specified Investment Flow-through entities) to benefit from flow-through tax treatment ended. As a result, many income trusts have converted to corporations on either a tax-deferred or taxable basis. A few have decided to remain as trusts for now, but they retain the ability to convert on a tax-deferred basis until December 31, 2012. Most Real Estate Investment Trusts were not affected by the new tax legislation. It is important to recognize that disposition of shares in a corporation that was originally purchased as a SIFT when part of the distribution was deemed to be return of capital will require an ACB Calculation.

For more detailed information on the conversion of trusts into corporations, including a table that contains the Income Trust name, the name of the Corporation into which it converted, the conversion date and the tax consequences of the conversion, please click on the "Trust Conversion" tab on the left side of this page.