Sale and purchase of Trailing Fee Mutual Fund

I am sure other Canadians are affected. The bank "Sold" a Mutual Fund (CIB901) and bought a similar one (CIB107). There is no Capital gain incurred, so I do not want to Sell & Buy. I am thinking a "Corporate Spin-Off" might be a way of recording the transaction. Any thoughts out there on this, or a different approach?
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Answers

  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    What  action was shown on your statement from  the financial institution?  What action downloaded?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • wmckiernon
    wmckiernon Member ✭✭
    The statement had a sell and a buy, with a note no capital gain. It was not downloaded. I manually enter the transaction updates. Speaking with the support person, the sale of the new mutual fund will be taxable based on the gain from the equivalent original price. 1.662 new stock for every old stock
  • wmckiernon
    wmckiernon Member ✭✭
    NotACPA - Did that help you formulate a response to my question?
  • AndreM
    AndreM Member ✭✭
    @wmckiernon I have the same issue and asked some advice. I am @AndreM my discussion should be posted to this Canadian site shortly. I have tried everywhichway to adjust the cost base to no avail. Since my broker does reflect the accurate real cost base it is just an annoying issue in my registered account but not in my non-registered account. I also have problems with Return of Capital where it adds the $amount to my cash balance and does not reflect in the cost base.
  • wmckiernon
    wmckiernon Member ✭✭
    Thank you AndreM. For now, I just added the "new" Mutual Fund quantity with the price calculated from the initial total cost. I then Removed the Previous (riginal) Mutual Fund. I am sure I will hear of a better way to record the transaction. Thank you for articulating the issue so well