RE:RE:RE:QuestionRickandMorty wrote: Hi Lock,
Thanks for all the detail. This differs from what Praesens had said where in Germany, "first in, first out".
If I bought on 2 separate occasions, first at 50 cents then later at $1, what I was worried about was that if I sold 5000 shares at $2, using the "first in, first out" principal, those first 5000 shares I sold would all be at a cost of 50 cents, so the total cost of shares would be $2,500, capital gain $7,500, and my remaining shares would now have an average cost of 83 cents. From what you are saying it sounds like in Canada (where I am located) the shares are sold using ACB rather than "first in, first out". If so, that is what I was hoping.
R&M, Lock is exactly right in Canada, whether you call it average cost base or Adjusted Cost Base as the CRA likes to call it, its the same thing (don't ask how I came to know about the semantics...)