RE:RE:RE:RE:Rangers30, please indicated the error. For HSE shareholders"
For Warrant Consideration Common Shares that were disposed of in exchange for CVE Warrants,
the shareholder will generally recognize a capital gain (or capital loss) equal to the amount, if any, by which the fair market value (“FMV”) of the CVE warrants received net of any reasonable costs associated with the exchange, exceeds (or is less than) the aggregate adjusted cost base (“ACB”) of such Warrant Consideration Common Shares determined immediately before the exchange."
Cenovus-Husky-transaction-shareholder-tax-information.pdf This sure sounds like there's a gain/loss to report to me.
All just my opinion/view/thinking
Quintessential1 wrote: There is no gain to report. The 3.24% of the HSE shares were acquired in a stock swap and do not trigger capital gains until sold or exercised and sold and then only in non-registered accounts.
At least that is my belief. If I am wrong I will find out when my brokerage issues me my T5. In my case the gain on the warrants for 2021 will be so small as to be practically inconsequential to my overall tax position anyway. If any of you are in a different position, cheers to you!
SHayden wrote: Please stop spamming the board, this is very childish.
RagingBull3 wrote: RagingBull3 wrote: calculating ACB of CVE shares and warrants. Understanding how to calculate, helps to understand your GAIN or LOSS for 2021, and whether for the commons to declare a gain or loss for 2021... depending on your tax situation.
Example: You bought 10,000 HSE shares at $3.00/share sometime before 2021.
Calculation for common shares:
# CVE shares = 10,000*0.7845= 7845
Portion ACB HSE share = 96.58%(10000*3)= $28974
ACB of CVE per share = 28974/7845 = $3.6933
Your ACB went from $3 to $3.69 because you have less shares and portion.
Calculation for warrants:
This should mean $30,000-28974 = $1026 is HSE ACB portion of warrants or 30000*0.0342=$1026
# of warrants is 10000*.0651 = 651
CVE ACB of Warrants = 1026/651 = $1.576
Gain to report for 2021 = $3.30-1.576 = $1.42 per warrant.... and now your ACB for warrants is $3.30.
Rangers30, please correct errors.
All just my opinion/view/thinking/calculating/gussing