tag:blogger.com,1999:blog-4402283548766807872.post6384512355566599260..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: Tax Loss Selling - 2014 VersionThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4402283548766807872.post-46205340223125302032015-02-10T23:55:30.144-05:002015-02-10T23:55:30.144-05:00Thanks, I appreciate you taking the time to help m...Thanks, I appreciate you taking the time to help me!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-78324699189367223742015-02-10T23:39:16.147-05:002015-02-10T23:39:16.147-05:00Hi Anon
The correct way is the actual proceeds an...Hi Anon<br /><br />The correct way is the actual proceeds and the actual cost, however, I have seen many people and some accountants just use the net gain/loss. However, I would suggest you do it the correct way, would make life easier if ever audited.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-49474149922251118542015-02-10T15:44:25.799-05:002015-02-10T15:44:25.799-05:00My accountant only recorded (in schedule 3 & i...My accountant only recorded (in schedule 3 & in aggregate) the total of my gains (in procceds) and total of my losses (in ACB) giving me my Loss/gain. So I may have traded 20 stocks with a total ACB of $170,000 and total proceeds of $175,000 for all trades, but he would write only my gains and loss giving me the same result.<br /><br />EX- ACB 27,500 - Proceeds $32,500 = Cap gain $5000 (rather than ACB $170,000 - Proceeds $175,000 = Cap gain $5000)<br /><br />I was partially responsible for my accountant doing it that way, as I did not give him my total ACB’s & Proceeds, only the losses and gains. (my notes to him would say “ Telus -Gain $1100, BCE- Loss $400 etc….) He has reported this way for the last 6 years, and the CRA has never questioned it, but going forward, and now that I'm doing it myself, I want to make sure that I do it properly. <br /><br />Can you please tell me if reporting the larger numbers is the way to go? or if I can continue to report the way my accountant used to?<br /><br />I do keep detailed records of every stock that I trade, and I keep them all on file for future reference or a possible audit.<br /><br /><br />thanks for your help<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-70971994436765598462014-11-28T16:53:07.400-05:002014-11-28T16:53:07.400-05:00Hi Anon
It is just terminology. The total capital...Hi Anon<br /><br />It is just terminology. The total capital gain (or realized gain) is the gross gain. The taxable gain is 1/2 of that amount. ie: you sell shares for $1,000 that you paid $200. The capital gain or realized gain is $800, but the taxable gain is $400<br /><br />In your example, if you have $5,000 in taxable gains, that means you had $10,000 in capital or realized gains before application of the 1/2 rule. Thus, you need $10,000 in capital losses or $5,000 in taxable ($10,000 x 1/2)The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27803683205403148542014-11-28T07:11:06.786-05:002014-11-28T07:11:06.786-05:00Thanks for the description but I am still a little...Thanks for the description but I am still a little confused by the example you gave under the Basic Uses of Losses section. I understand why you take half of the loss to apply against the gains but aren't only half of the gains taxable as well? Asked another way, if I have $5000 in taxable gains that I want to completely offset do I need $5000 in taxable losses or $10000?Anonymousnoreply@blogger.com