ACB Tracking - The Adjusted Cost Base Calculator for Income Trusts, Closed-End Funds and ETFs
This unique website application was created to make it easy for Canadian accountants, investment advisors and investors to calculate the adjusted cost bases of ETF's, Closed-end Funds, REITS, Income Trusts and Split Shares.
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 Exchange-traded Funds (ETFs), Closed-end Funds, REITs, Income Trusts and Split Shares pay regular 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.
ACB Tracking Can Save You Time And Money!
Income Trusts Convert to Corporations
ETFs and Phantom Distributions
Phantom distributions are non-cash distributions that do not add to the unit holder's position. These payments increase the ACB of the position and, if not tracked properly, will result in the investor paying tax twice for the same distribution. Of the almost 300 Canadian ETFs that made distributions in 2012, approximately half have paid a phantom distribution at one or more points in their histories. As an investor, tax preparer or investment advisor, one could easily forget to increase the ACB on ETFs that made phantom payments over the years. This could result in a significant overstatement of the tax liability on disposition. To give you an example of the magnitude of this issue, in 2013, over 50 ETFs and closed-end funds paid phantom distributions. Blackrock has announced that in 2013 it paid phantom distributions on 26 of its iShare ETFs, with the largest one coming in at $1.08 per unit. You cannot afford to miss these, and by using ACB Tracking, you won't!
The Most Complete and Accurate Distribution Database for Income Trusts, Closed-End Funds and ETFs Available!
"As Easy As ACB"
"This service takes hours out of a difficult task and provides the Client/Accountant with a comprehensive report on each security. We use this for all trust unit sell transactions."
Robert McLennan, CIBC Wood Gundy, Penticton, B.C.