Q: Tax question
If l sold Bce for a 30,000 dollar loss and also sold
Bip.un for a 30,000 gain would that offset the capital gains ?
My Concern is bip.un is milt national company and that the same rules apply
If l sold Bce for a 30,000 dollar loss and also sold
Bip.un for a 30,000 gain would that offset the capital gains ?
My Concern is bip.un is milt national company and that the same rules apply
5i Research Answer:
Yes, the loss and gain would cancel each other, assuming one has calculated the average cost base of each investment properly. The issue comes from the fact that a small part of BIP.UN's distribution is considered return-of-capital. This amount of the distribution over the years needs to be deducted from the average cost base. But if this has been tracked and the gain/loss match, no tax will be payable in the example provided.