Dividend Growth Split Corp T.DGS

Dividends

[Bldwealth]

DGS dividends appear as return of capital on my TD investment summary.  Does this mean I do not include these on line 12000?  If not that is a good reason to own DGS if these dividends are not included in income.  At the bottom of the form is stated "return of capital is used to calculate the adjusted cost base."  How does one calculate that?  Any information would be greatly appreciated.

[kurtwalter]

https://www.td.com/ca/en/asset-management/documents/investor/pdf/news-insight/return_of_capital_salestool_en.pdf

[Bldwealth]

So, if I've paid a total of approx $130,000 for my 20,000 shares, and earned $4700 in payments of ROC from DGS, do I simply reduce my amount paid by $4700 which will then increase the capital gain by that same amount on the Schedule 3 form section 3 where I'm listing my publicly traded shares.  I don't see anywhere else on schedule 3 to enter ROC. 

[scarface9]

You wouldn't report on your income taxes until you sell. You do have to update your ACB for your own records. For example; using your #'s $130,000/20,000=$6.50/share $130,000-$4,700 ROC=$125,300/20,000 shares = $6.265/ share. This is your ACB (adjusted cost base) The share price you would use for income taxes on schedule 3 AFTER you sell. That's the basics. Someone else can chime in

[Bldwealth]

Thank you for your response.  I have sold these shares, which I bought in July, Aug and Sept and sold them in Nov.  I am now preparing my income tax return for 2021.  

[Nakate]

Theres no free ride roc lowers your acb which increases your selling profits which then is taxable as a capital gain

[flamingogold]

My shares are in my TFSA. JT can't touch me.

[Nakate]

yep same here, the less paper work the better

[scarface9]

That's a little more time consuming. You'll have to do more ACB calculations since you bought multiple times. If you sold over a few months too, it gets a bit messier.

[novascotian2014]

I am INVESTED with the ROYAL BANK and they send me T5 and T5008 SLIP for Income Tax Purposes ..and the T5 will show DGS (ROC... CAP GAINS DIV ...FGN INC) which is Tax Free .. the T5008 will show DGS (PRICE BOX 21:what you SOLD DGS for... AMOUNT BOX 20: Value you Recieved for DGS and  BOOK VALUE GAIN/(LOSS) of DGS ..).. ROC Decreases your Base Cost.. and may Increase your Capital Gains ,which