Q: Hi Peter...If you could put on your CRA hat for a minute. I made a metal error this past summer and sold my WSP shares held in a margin account triggering a sizeable capital gain. The same day I rebought the shares. Scotia iTrade has now sent me their tax form but their numbers did not match mine. In essence Scotia raised the adjusted cost base of the shares up by including the new shares with the original shares. It is like I purchased the shares first (raising the ACB) and then sold a portion of the holding. Naturally I am tempted to go with Scotia's numbers because it reduces the tax burden. Do you have any thoughts?
As an aside it would seem one could always raise the ACB by buying shares on margin and then selling the holding after let's say 30 days. (We have to renovate the house in about a year so I will need to sell stocks to raise cash. All stock positions are currently positive thanks in no small measure to you, Ryan and the 5i team). The risk is the share price tanks after I have increased our position and one ends up with a loss instead of a profit. However you have advised us that in regards to rebuying shares after claiming a capital loss that generally the share price doesn't move much over 30 days.
Any thoughts you have would be appreciated,
Jim
As an aside it would seem one could always raise the ACB by buying shares on margin and then selling the holding after let's say 30 days. (We have to renovate the house in about a year so I will need to sell stocks to raise cash. All stock positions are currently positive thanks in no small measure to you, Ryan and the 5i team). The risk is the share price tanks after I have increased our position and one ends up with a loss instead of a profit. However you have advised us that in regards to rebuying shares after claiming a capital loss that generally the share price doesn't move much over 30 days.
Any thoughts you have would be appreciated,
Jim
