RE:RE:RE:RE:Bank calculations regarding 5:! consolidationcheckup wrote: I asked RBC about the update; This is their reply:
Thank you for your patience while we reviewed case. Our operations team has confirmed that the book value of HUT 8 Mining holdings after the share consolidation changed because the company confirmed that its a taxable event, as a result of the cross-border merger. Therefore the book costs were updated to the Fair Market Value as of opening on the effective date which was U$11.91 per share, converted to CAD @ 1.3541.
I do not understand this.
Hi there, because it was a cross-border merger the CRA treats the transaction as though your pre-merger shares were sold and then the post merger shares bought. For shares not held in a TFSA or self-directed RRSP, this will have incurred a tax loss for most of the longs which we will apply against the gains when we sell.
Hope that helps. :)
Good luck everyone!
Seven.