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!
We have the distribution and ROC data on over 700 ETFs, Closed-end Funds, REITs, Income Trusts and Split Shares 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.
Income Trusts Convert to Corporations
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, although a few decided to remain as trusts. 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" tabon the left side of this page.
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!
Without question, the database created by ACB Tracking is the most comprehensive and accurate of its kind available. All data was entered, checked and re-checked by experienced investment professionals extremely familiar with these securities. In a recent survey, our clients overwhelmingly said that their confidence level in our data accuracy was either high or very high. In addition, over half of our clients stated that the ACB Tracking servicesaved them more than 75% of the time required to do the calculations manually! Finally, 98% said that our reports were complete and clear, and 100% said that their questions were handled promptly. We at ACB Tracking are extremely proud of our service and invite you to click on the Testimonials tab to see what financial professionals across Canada are saying about this time-saving and money-saving tool for calculating adjusted cost bases, and how it is....