Charitable donations can be made not only in the form of cash, but can also be made as in-kind contributions of property.  When an in-kind contribution consists of publicly traded shares, mutual funds or bonds, any capital gains realized are eligible for an inclusion rate of zero.  This means that a donor can avoid playing […]

In order to accurately calculate adjusted cost base and capital gains a complete history of all transactions is required, including not only purchases and sales, but also reinvested distributions, return of capital, phantom distributions, and splits.  A common and unfortunately occurrence is when a Canadian investor has owned a security for a long time, has […]

Often preferred shares are issued with conditions allowing the issuer to redeem the shares after a certain date for a predetermined price (the issuer has the option to redeem the shares, but not the obligation).  Preferred shares can also have a predetermined maturity date, whereby the issuer has the obligation to redeem the shares on […]

An in-kind contribution to a registered account is where shares are transferred directly into the account, as opposed to cash.  When making an in-kind contribution to a registered account (such as an RRSP or TFSA), it’s possible for a capital gain to be realized, even if the shares are transferred directly.  Even though you haven’t […]

The superficial loss rule defines certain situations in which capital losses are disallowed.  Section 54 of the Income Tax Act indicates that a superficial loss is a loss occurring from the sale of property when both of the following two conditions are met: During the period that begins 30 days before and ends 30 days […]