Comments on: Encana Spinoff And The ACB? http://blog.taxresource.ca/encana-spinoff-and-the-acb/ Canadian Tax Help & Financial Planning Resources Sun, 12 Feb 2012 02:53:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tax Guyhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9876 Tax Guy Mon, 28 Feb 2011 12:41:08 +0000 http://blog.taxresource.ca/?p=5984#comment-9876 The ACB is the cost of acquisition. The calculation shows how the ACB is split between the two shares. The ACB is the cost of acquisition. The calculation shows how the ACB is split between the two shares.

]]> By: Zedarhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9873 Zedar Mon, 28 Feb 2011 03:16:22 +0000 http://blog.taxresource.ca/?p=5984#comment-9873 In the example you give above of the method to calculate the ACB of the Encana (new) and Cenovus shares - this would be the ACB to report on the tax return (ACB = proceeds of disposition) reulting on no gain.Would this same ACB then be used for future dispositions?"Say you bought 100 shares Encana several years ago for $10 per share. Following the split, you will have 100 shares of Encana and 100 shares of Cenovus. The adjusted cost base of each would be:Encana = $515 (or $5.15/share) Cenovus = $485 (or $4.85/share)" In the example you give above of the method to calculate the ACB of the Encana (new) and Cenovus shares – this would be the ACB to report on the tax return (ACB = proceeds of disposition) reulting on no gain.

Would this same ACB then be used for future dispositions?

“Say you bought 100 shares Encana several years ago for $10 per share. Following the split, you will have 100 shares of Encana and 100 shares of Cenovus. The adjusted cost base of each would be:

Encana = $515 (or $5.15/share)
Cenovus = $485 (or $4.85/share)”

]]> By: Tax Guyhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9452 Tax Guy Thu, 20 Jan 2011 23:49:15 +0000 http://blog.taxresource.ca/?p=5984#comment-9452 Try an investment website like stockhouse. Corporate actions is not what this website is about. Try an investment website like stockhouse. Corporate actions is not what this website is about.

]]> By: Terryhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9451 Terry Thu, 20 Jan 2011 23:44:12 +0000 http://blog.taxresource.ca/?p=5984#comment-9451 NOTHING COMES OUT FROM SEDAR... THANKS NOTHING COMES OUT FROM SEDAR… THANKS

]]> By: Tax Guyhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9434 Tax Guy Thu, 20 Jan 2011 04:58:51 +0000 http://blog.taxresource.ca/?p=5984#comment-9434 You will need to search for the information circular to determine the tax treatment of the cost base. You can search SEDAR for Canadian companies and EDGAR for US companies. You will need to search for the information circular to determine the tax treatment of the cost base. You can search SEDAR for Canadian companies and EDGAR for US companies.

]]> By: Terryhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9425 Terry Wed, 19 Jan 2011 22:16:58 +0000 http://blog.taxresource.ca/?p=5984#comment-9425 i have dome petroleum shares.. they were bought by amoco in what year? i did not do anything like transfer, etc... how sdould i treat my shares? thanks i have dome petroleum shares.. they were bought by amoco in what year? i did not do anything like transfer, etc… how sdould i treat my shares? thanks

]]> By: Tax Guyhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9413 Tax Guy Wed, 19 Jan 2011 13:38:56 +0000 http://blog.taxresource.ca/?p=5984#comment-9413 Based on a news report from CBC, Laidlaw filed for <a href="http://www.cbc.ca/money/story/2001/06/28/laidlaw_010628.html" rel="nofollow">bankruptcy on June 28, 2001</a>.Nortel appears to have <a href="http://www.cbc.ca/money/story/2009/01/14/nortelbankruptcypro.html" rel="nofollow">filed in January 2009</a>. Based on a news report from CBC, Laidlaw filed for bankruptcy on June 28, 2001.

Nortel appears to have filed in January 2009.

]]> By: Terryhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-9402 Terry Tue, 18 Jan 2011 06:13:49 +0000 http://blog.taxresource.ca/?p=5984#comment-9402 Please provide date of bankruptcy for laidlaw and nortel.. thanks Please provide date of bankruptcy for laidlaw and nortel.. thanks

]]> By: haydenhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-5719 hayden Tue, 16 Mar 2010 15:26:51 +0000 http://blog.taxresource.ca/?p=5984#comment-5719 Thanks Tax Guy, glad I came across this site, what a great resource! Thanks Tax Guy, glad I came across this site, what a great resource!

]]> By: Tax Guyhttp://blog.taxresource.ca/encana-spinoff-and-the-acb/comment-page-1/#comment-5715 Tax Guy Tue, 16 Mar 2010 10:42:05 +0000 http://blog.taxresource.ca/?p=5984#comment-5715 I have not reported such exchanges in the past. However, it would make sense that it should be reported and I’m now of the opinion that the exchange is reported on the return as a disposition for the original ACB (and there is no gain or loss).You can attach a letter to your return indicating the exchange was of Encana and Cenovus under section 85.1. This would be more than sufficient to explain to the CRA why there was no gain or loss.The issue here is not one of the taxability of the transaction but that the transaction is a disposition for tax purposes. I have not reported such exchanges in the past. However, it would make sense that it should be reported and I’m now of the opinion that the exchange is reported on the return as a disposition for the original ACB (and there is no gain or loss).

You can attach a letter to your return indicating the exchange was of Encana and Cenovus under section 85.1. This would be more than sufficient to explain to the CRA why there was no gain or loss.

The issue here is not one of the taxability of the transaction but that the transaction is a disposition for tax purposes.

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