From: sharx35@hotmail.com   
      
   "Canuck57"  wrote in message   
   news:doiYu.111358$6Q1.23115@fx21.iad...   
   > On 10/03/2014 5:43 PM, heich1@istar.ca wrote:   
   >> In 2013 I exchanged my shares for Inmet for First Quantum Ltd. I   
   >> filled out a   
   >> T2057 form to the transfer agent. They sent me back a copy and   
   >> said that they have sent a copy to Revenue Canada. I believe I   
   >> have to pay no capital gains tax.   
   >> When I fill out my 2013 Tax Form do I have to fill out anything   
   >> about this transaction and if I do what do I fill out?   
   >>   
   >   
   > You must report these investments.   
      
   Only if you DO NOT file the T2057 election form.  I've dealt with a   
   number of these, over the years, both for my own portfolio and for   
   those of clients. By filing the form, one re-calculates the   
   adjusted cost base to be the original cost MINUS any distributed   
   Return of Capital. Nothing more has to filed with the tax return   
   for the year of the exchange. HOWEVER, when any of the "new" shares   
   are sold, the capital gain/loss has to be calculated using that   
   RE-CALCULATED cost base.   
      
   Now, if one DOESN'T file the T2057 return with the transfer agent   
   or whatever company who is doing the paperwork, then a capital   
   gain/loss is immediately created as of the date of the share   
   "exchange" as per the formula: Fair Market Value of the "new"   
   shares on the exchange date MINUS the original ADJUSTED (for return   
   of capital, commissions, etc.) COST BASE. That gain/loss data would   
   be reported on a Schedule 3 form attached to the T1 tax return for   
   the year of the "exchange".  Then the 'new" shares have a NEW   
   adjusted cost base EQUAL to that Fair Market Value I just mentioned   
   so that, when THEY are eventually sold, the resulting gan/loss will   
   use that NEW adjusted cost base in the calculation. It boils down   
   to when you want to pay the piper: NOW--then don't file the T2057   
   or LATER--then file the T2057.   
   You're welcome.   
      
      
      
      
   >   
   > http://www.cra-arc.gc.ca/tx/bsnss/tpcs/fts-paa/nvstr/menu-eng.html   
   >   
   > --   
   > Socialist-statism corruption is a great idea so long as the   
   > credit is good and other people pay for it. When the credit runs   
   > out and those that pay for it leave, they can all share having   
   > nothing but unemployment, debt and discontentment.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)