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Capital gains/losses tax calculator
January 10, 2021
9:24 pm
Bud
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Is it sold net amount minus buy net amount to arrive at gain or loss for stocks or gross amount before commission

January 10, 2021
9:57 pm
topgun
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Sell - cost = capital gain. Commissions not included since you would claim them as investment expenses.

Have a Great Day

January 11, 2021
5:21 am
Bill
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Actually it's gross proceeds less selling commission less commission-included cost, in the simple case of one purchase event, one subsequent sell event.

Can't claim commissions as "investment expenses".

January 11, 2021
6:35 am
topgun
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You are correct.

Have a Great Day

January 11, 2021
10:22 am
Bud
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So its buy gross amount before commission minus sold gross amount before commission = capital gain or loss

January 11, 2021
11:05 am
Bill
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Don't know how you get that from post #3, Bud.

January 11, 2021
12:09 pm
Norman1
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Schedule 3 of the T1 General return is where capital gains are reported.

It is quite obvious from the form what amounts are needed and that the three amounts are what Bill listed.

The form also mentions the T4037 Capital Gains guide that has details for more complicated scenarios.

January 11, 2021
12:30 pm
savemoresaveoften
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Bud said
Is it sold net amount minus buy net amount to arrive at gain or loss for stocks or gross amount before commission  

I will give u a simple example:

Buy $10000 + $10 commission
Sell $11000 + $10 commission

Your capital gain is $980. 50% of that will be taxable.

Hope it is clear now....

January 12, 2021
6:46 am
Bud
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savemoresaveoften said

I will give u a simple example:

Buy $10000 + $10 commission
Sell $11000 + $10 commission

Your capital gain is $980. 50% of that will be taxable.

Hope it is clear now....  

Subtract commissions/fees then from buy n sell order to come up with capital gain or loss. In this case a $1,000 gain minus commissions of $20 leads to the final capital gain of $980 reported on tax return.

Reverse if it was a loss the final loss would be after commission is subtracted out:
Sell $10000 + $10 commission
Buy $11000 + $10 commission
Loss = $980

Bottom line subtract commission trading fees out of calculation

January 12, 2021
7:14 am
savemoresaveoften
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Bud said

Subtract commissions/fees then from buy n sell order to come up with capital gain or loss. In this case a $1,000 gain minus commissions of $20 leads to the final capital gain of $980 reported on tax return.

Reverse if it was a loss the final loss would be after commission is subtracted out:
Sell $10000 + $10 commission
Buy $11000 + $10 commission
Loss = $980

Bottom line subtract commission trading fees out of calculation  

wouldnt loss be $1000 + $20 = $1020

January 12, 2021
10:05 am
Bill
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I agree, savemoresaveoften.

January 12, 2021
10:34 am
Norman1
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That's right:

(2)
Proceeds
of
disposition
(3)
Adjusted
cost
base
(4)
Outlays and
expenses (from
dispositions)
(5)
Gain (or loss)
(column 2 minus
columns 3 and 4)
$10,000.00 $11,010.00 $10.00 ($1,020.00)
January 12, 2021
12:35 pm
Bill
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The rules predate discount brokers, diy. Commissions used to be way heftier back in the day, they're now immaterial.

March 2, 2021
5:46 pm
Bud
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Why is it so damn hard to calculate capital gains or losses.

For example on stock, sell $1200 minus buy $1000 $10 sellcommission +10 buycommission = $180 cap gain is this correct? include buy sell
commission in buy outlay

Proceeds of disposition – (ACB + outlays and expenses) = capital gain/loss

March 2, 2021
5:54 pm
Bill
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Bud, you're back at the same question that you started this thread with and that's already been answered in the previous 13 posts. And that you seem to understand, as you've properly calculated a $180 gain in your latest example. I don't get it.

March 2, 2021
8:06 pm
Bud
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then its sell stock $1200-$10comm = $1190

buy 1000+10comm = $1010

1190-1010 = cap gain

thats more clear. subtract commission from sell price. add to buy price.

the reverse:
sell 1000-10= 990
buy 1200+10= 1210
loss $220

March 3, 2021
5:50 am
Bill
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That's it. Just change your last sentence in post #14 to
"Proceeds of disposition (net of selling commission) – Purchase cost (including purchase commission) = capital gain/loss".

It's an example of tax wording overcomplicating a simple idea, it's essentially logical to just take your net proceeds in your pocket less your total all-in costs to determine how much you gained or lost.

ACB is just a tax term that in simple terms means purchase price plus purchase-related commission/costs. Of course if you have a mixture of purchase prices due to separate purchase events you use a weighted average to calculate.

March 3, 2021
7:36 am
Bud
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and subtract commission fee from sell/disposition proceeds

March 3, 2021
7:46 am
Norman1
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One needs to report these three things on the tax return:

  1. Gross proceeds from selling
  2. Adjusted cost base that includes buying commissions
  3. Outlays and expenses from selling that includes any selling commissions

Capital gain is then [1] - [2] - [3].

Just report and calculate as Schedule 3 prescribes. It's that simple when one doesn't try to make up one's own way of calculating!

The brokers will be reporting [1] to CRA. If one subtracts [3] from [1] and reports that as [1], then it won't match.

Brokers report that one has sold a total of $10,000 of proceed from selling. One decides to subtract selling costs and reports $9,000 as proceeds from selling. What is CRA going think? One has forgotten to report $1,000 of sales.

March 3, 2021
8:30 am
Bill
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Bud, post 18 - ?! Anyway, just do as Norman1 says, follow Sch 3 columns (2) - (5) and you can't go wrong. Note you need to indicate year of acquisition too, in column (1).

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