If Box 21 shows the proceeds of disposition, and Box 20 is blank, how do I figure out what my purchase value was to arrive at a NET figure?
Exactly my point. How can I calculate capital gain/loss and present it to Revenue Canada? Where are all canadian traders: North Pesos, Sam Mcgee, etc.? We need your help here.
Is this your first brokerage account? Its up to you to figure out your ACB of the shares when you sell. All revenue canada knows is how much you sold in the year. If what you report as shares sold is not close to what the broker says you sold, then you might be flagged for an audit. If you are audited, you have to have a good paper trail showing the ACB of everything you sold. Your exchange rate can be the rate on the day of the transaction, or the BoC rate for 2003, which is 1.40 I believe
Thank you ctrader for your reply, This is my first time with IB, but I traded before through canadian online brokers. Don't I have to provide to revenue canada total capital gain/loss for the year? Accountant who prepared my income tax return converted Proceeds and ACB through annual average exchange rate and presented on Schedule 3, where we had to provide total capital gain/loss for the year. ...Should I fire my accountant? That is why I was surprised that IB does things differently. Appreciate your help.
IB doesn't do things differently, you probably just didnt' see a T5008 from your other brokers. What your accountant did is right. T5008 is for CCRA. If the amount you sold on T5008 is out of whack from what you report on schedule 3, you could get flagged for an audit.
I am not accountant, but if you check with ADRC you will see that 2 methods are accepted by them, use a daily exchange rate or use average daily for the year, in this case you can contact ADRC for to know what is the offical exchange that the will accept for the last year. You have the choice of the method, usually you take the best for you but not everybody keep in his records the daily rate. If you can do the both methods and this best for you.