27 reasons to account for ACB

  1. Proof or Validation of what you own 
  2. Validation of cash and transfers for Proceeds of Crime/Money Laundering / attribution tracking 
  3. Calculation of capital gains and losses for Tax purposes
  4. Adjustment of cost for superficial losses to bump future cost to reduce tax
  5. Verification of RSP claims to ensure all claims captured
  6. Verification of withdrawals from RSP/RRIF and tax withheld at source
  7. Instant tax planning if the market changes dramatically
  8. Tax consequences for RSP swaps/loss denial/capital gains
  9. Tax planning to reduce tax on capital gains by selling to trigger losses
  10. Planning to get back tax you already paid by triggering losses to carry back
  11. Plan for retirement/demise/divorce/ Not so active/Not so alive/Not so together scenarios – Plan for what to hold and what to sell
  12. Plan to reduce cost of demise to preserve capital for spouse/family
  13. Assessment of value of financial advisors advice?
  14. Warnings about calculation verification on statements by investment companies
  15. What happens when you can’t remember what you own? Dementia has set in. How will you communicate about your holdings if that is a sudden event?
  16. Verify T-slips? Are they right? Are they ever wrong?
  17. Verification of expenses, margin interest, flow thru’s, write down of ACB to nil
  18. Cost of lawyers doing accounting because accounting not done while alive to assist executor reduces value of estate, adds to stress for those left behind
  19. Cost of pre-1971 ownership documentation
  20. Elections in 1994 documentation, CGE Pool eliminated after 10 years – did you add back your unused cost? When you sold, did you remember to use those figures to calculate reduced gains?
  21. Comprehensive Income calculations required for reviewed or audited financial statements for corporations, trusts, non profits – all unrealized gain/loss net of tax
  22. RRSP over contribution assessment arrives for contributions not claimed, reconciled claims between your investments and your tax returns?
  23. Tax auditors requests to verify source of funds for attribution of income back to source
  24. Responsibility to Public Trustee when acting as a trustee for a trust, managing finances for a senior or person with a disability
  25. Are you the Executor? How will you report to the beneficiaries in an orderly fashion? Are you aware that the Charitable Foundation that was left a % of the estate is entitled to financial statements and will check your work?
  26. Are you the accountant expected to account and concerned about the source of the funds invested?
  27. Have you elected under S.50(1) on your delisted shares and claimed the loss carryback to obtain a refund for tax paid on capital gains in the last three years?

 and this was before civil penalties and 20% repeat offender penalties for three years in a row, and before TFSA's and RDSP's... both are trusts and require monitoring for superficial and stop loss rules....
 
and definitely before Unit trusts converted to Stapled Units ....
 
Sleep tight Tracy...

 

 

 

 

 

 

 

 

 

 

 

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