How must redemptions on U.S. dollar accounts be reported?
It is necessary to convert any redemption proceeds from U.S. dollars into Canadian dollars. The ACB of an investment must be converted into Canadian dollars based on the exchange rate in effect at the time of each transaction for purchases, reinvested distributions and return of capital component of distributions. 5. Capital gains Exemption In his 1994 income tax return, the unitholder may have decided to realize capital gains on Fund units that had accrued up to February 22, 1994. In this event, he has an exempt capital gains balance for each National Bank Mutual Fund held. If the unitholder later chooses to redeem units and realises a capital gains, or if he was eligible to receive capital gains distributions, he can reduce the capital gains by an amount corresponding to the exempt capital gains balance for the Fund. Unused exempt capital gains balance portions will expire at the end of the year 2004, at which time all unused balance amounts will be added to the ACB per unit.
Redemption proceeds in U.S. dollars must be converted into Canadian dollars. The ACB of an investment must be converted into Canadian dollars based on the exchange rate in effect at the time of each transaction for purchases, reinvested distributions and return of capital component of distributions. 5. Capital gains Exemption In his 1994 income tax return, the unitholder may have decided to realize capital gains on fund units that had accrued up to February 22, 1994. In this event, he has an exempt capital gains balance for each National Bank mutual fund he holds. If the unitholder later chooses to redeem units and realises a capital gain, or if he was eligible to receive capital gains distributions, he can reduce the capital gains by an amount corresponding to the exempt capital gains balance for the fund. Unused exempt capital gains balance portions will expire at the end of the year 2004, at which time all unused balance amounts will be added to the ACB per unit.
