Where to declare capital gain on T1 when LP investment is sold and payments were deemed Return of Capital. i.e. 100,000 investment paid 8,879 as ROC, ACB is now 91,121?
Where to declare capital gain on T1 when LP investment is sold and payments were deemed Return of Capital. i.e. 100,000 investment paid 8,879 as ROC, ACB is now 91,121?
Return of Capital (ROC) is not taxable when received. Instead, you would use the ROC distribution to reduce the Adjusted Cost Base (ACB) of your investment. So, your ACB would be 91,121 - 8,879.