Canadian Investment & Retirement Roadmap

Question 01/10

You own an ETF that issues a $500 Reinvested (Non-Cash) Distribution at year-end. You did not receive any cash, but it appears on your T3 tax slip. What should you do to your ACB?

Nothing, because I didn't receive any cash. Decrease your Total ACB by $500. Increase your Total ACB by $500. Sell the shares immediately to reset the cost.