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Frequently Asked Questions

About U.S. dollar and foreign accounts

What currency is my Summary of Securities Dispositions in?

Beginning with the 2010 tax year, the Summary of Security Dispositions in your T5 tax package will automatically display information about securities sold during the year in Canadian dollars. Previously, the Summary of Security Dispositions displayed book cost, disposition and gain/loss information in the currency of the account. With this new improvement, you will not have to spend time researching and calculating the Canadian dollar equivalent of gains/losses in order to file your tax return for your U.S. and foreign accounts.

 

How is Canadian dollar equivalent calculated?

RBC Dominion Securities calculates Canadian dollar equivalent using the exchange rate on the settlement date of each transaction, either purchase or sale. If you acquired the securities on more than one date, the exchange rates at settlement date are averaged together to calculate the Canadian dollar equivalent of the book cost.

 

Will the Summary of Security Dispositions display only the Canadian dollar equivalents?

Yes, as of the 2010 tax season, the Summary of Security Dispositions will display only the Canadian dollar equivalent.

 

What if RBC Dominion Securities does not have my acquisition history?

In situations where RBC Dominion Securities does not have a record of the entire acquisition history for a position (e.g. when positions are transferred in from another financial institution) we are unable to display a Canadian dollar equivalent of book cost and gain/loss for the position. The Canadian dollar equivalent of the disposition amount will be displayed, but book cost and gain/loss will be blank.

 

Can I provide the acquisition history so that Canadian dollar equivalent book cost and gain/loss can be displayed?

You may contact your Investment Advisor to provide the history of each acquisition date and quantity of securities acquired so that our system can be updated with the book cost of your position (if you have not already provided it). If this information is updated in our system before December 31, it will be applied to your Summary of Security Dispositions for that tax year.

 

What should I do if I used a different exchange rate methodology on previous tax returns than the one used by RBC Dominion Securities?

RBC Dominion Securities uses the exchange rate as of the settlement date of the transaction to calculate the Canadian dollar equivalent of book cost for a position. Canada Revenue Agency (CRA) requires you to use a consistent methodology during any given tax year, therefore the methodology used for your tax return in the coming tax season is not impacted by your previous years’ returns.

If you would like to use a different methodology for calculating Canadian dollar equivalent than the one used by RBC Dominion Securities, we strongly advise you to consult with a professional tax advisor when preparing your tax return.

 

The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This information is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. This information is not intended as nor does it constitute tax or legal advice. Clients should consult their own accountant or other professional advisor for more detailed tax related information. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2017. All rights reserved.