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April 6, 2024
Question

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?

  • April 6, 2024
  • 1 reply
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    1 reply

    TurboTaxSusan
    April 6, 2024

    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.

    a_zagarAuthor
    April 6, 2024

     

    Where on the T1 do you report the capital gains when selling this investment?

    TurboTaxSusan
    April 6, 2024

    You would put Capital Gains/Losses on Schedule 3.