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Email this9:24 pm
February 20, 2018
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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
9:57 pm
September 6, 2020
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Sell - cost = capital gain. Commissions not included since you would claim them as investment expenses.
Have a Great Day
5:21 am
September 11, 2013
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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".
6:35 am
September 6, 2020
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You are correct.
Have a Great Day
10:22 am
February 20, 2018
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So its buy gross amount before commission minus sold gross amount before commission = capital gain or loss
11:05 am
September 11, 2013
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Don't know how you get that from post #3, Bud.
12:09 pm
April 6, 2013
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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.
12:30 pm
March 30, 2017
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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....
6:46 am
February 20, 2018
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savemoresaveoften said
I will give u a simple example:
Buy $10000 + $10 commission
Sell $11000 + $10 commissionYour 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
7:14 am
March 30, 2017
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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 = $980Bottom line subtract commission trading fees out of calculation
wouldnt loss be $1000 + $20 = $1020
10:05 am
September 11, 2013
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I agree, savemoresaveoften.
10:34 am
April 6, 2013
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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) |
12:35 pm
September 11, 2013
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The rules predate discount brokers, diy. Commissions used to be way heftier back in the day, they're now immaterial.
5:46 pm
February 20, 2018
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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
5:54 pm
September 11, 2013
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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.
8:06 pm
February 20, 2018
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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
5:50 am
September 11, 2013
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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.
7:36 am
February 20, 2018
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and subtract commission fee from sell/disposition proceeds
7:46 am
April 6, 2013
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One needs to report these three things on the tax return:
- Gross proceeds from selling
- Adjusted cost base that includes buying commissions
- 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.
Please write your comments in the forum.