Easy way to calculate capital gains tax on DRIP shares

Oct 01 10:10 2018 Print This Article

Q: I purchased 100 Bank of Nova Scotia dividend reinvestment plan (DRIP) common shares @ $30.60 in 1994 and have since added 300 shares through their Optional Cash Purchases at different intervals. My account today has a balance of almost 950 shares in total @ $77.00 (certificate shares and drip shares).

I would like to realize the capital gains on these shares this year since it will be my lowest income year. (Some dividend income estimated at less than $10,000 and a Defined Benefit pension of $23,000). The plan allows me to repurchase up to $20,000 per year, which I intend to do.

My concern is this: How do I calculate the capital gain on each share? What options do I have? I may be able to obtain some info from Computershare or the internet as I do not have every statement from 1994. Dividend income was paid every year.

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MoneySense is a Canadian personal finance and lifestyle magazine published by Rogers Publishing Limited, a division of Rogers Communications.Written for Canadians who want to take financial control of their lives, MoneySense is Canada's best-selling investment and lifestyle magazine, helping readers make smart, informed decisions about how to get the most from their money. The magazine has received many awards, including multiple National Magazine Awards and CFA Society Toronto Awards.

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