A question about ACB

快樂牛郎

I noticed that my mom's accountant seemed to calculate the ACBs of her stocks incorrectly.

Suppose you make one purchase, one sale and another purchase of the same stock within the same year.  The transactions are

Jan 5   ABC   buy 100 shares at 50 per share
Jun 5  ABC   sell 100 shares at 45 per share
Nov 5   ABC   buy 100 shares at 40 per share

My understanding is that you have incurred a loss when you sold ABC on Jun 5, so you would report a net loss of 5*100 = 500 dollars.

However, the accountant calculated the ACB of ABC by combining both purchases and concluded that the net gain/loss was 0 because ACB=45 and the selling price was 45.

Littleprince

據我僅有的知識說﹐這例子﹐以沒有 DIVIDEND 情況說﹐ ACCOUNTANT 的算法是對的。。。因為係以一年算﹐若這人 過了 2008 年 12 月 31 日 才買返 100 股﹐﹐就算入下一年﹐新買的就不計。

有無人可以 CORRECT 我﹖

tofu

superficial loss -
did your mum repurchase the same stock within 30days after she sold it?  if yes, the accountant is corrected.

快樂牛郎

superficial loss -
did your mum repurchase the same stock within 30days after she sold it?  if yes, the accountant is corrected.
tofu 發表於 2009/3/29 13:08

Oh right...Completely forgot about that.
Thanks,

kingsway

I noticed that my mom's accountant seemed to calculate the ACBs of her stocks incorrectly.

Suppose you make one purchase, one sale and another purchase of the same stock within the same year.  The tr ...
快樂牛郎 發表於 2009-3-29 02:35

But her mom repurchase the stock at Nov, which is over 30 days of the previous sales.  
Unless cowboy just makes up the transaction date for example.

快樂牛郎

But her mom repurchase the stock at Nov, which is over 30 days of the previous sales.  
Unless cowboy just makes up the transaction date for example.
kingsway 發表於 2009/3/29 17:38

Yes, I just made it up.
There's a mix of both in the real case.

RXKEN

The accountant is calculating this situation incorrectly.

According to the situation given,
There is capital loss incurred on Jun. 5

The repurchase of the stock on Nov. 5 has no impact on the capital gain/loss yet.

There is no superficial loss as well because you did not buying it back within 30 calendar days.

Littleprince

解釋一下﹐我上面指出 DIVIDEND 只係因為若派過息﹐係會影響 ACB﹐只係這樣而已。。。我知 DIVIDEND 係算入 T3 的

tofu

"""我上面指出 DIVIDEND 只係因為若派過息﹐係會影響 ACB﹐"""
- correct, under accounting/bookeeping purpose, but not taxation purpose

maldini

How do you use the superficial loss? You can still add the superficial loss to the ACB of the same stock, if you have a gain in the future, right?