Canadian Tax - S17 – Investments

Investment account

An account holding securities or other investments.

Security

A financial investment such as a share, bond, or other investment instrument.

Stock/share

An ownership interest in a corporation.

Bond

A debt investment under which the issuer generally owes money to the holder.

Adjusted Cost Base (ACB)

The tax cost of an investment used to calculate a capital gain or loss.

Capital gain

Generally, proceeds of disposition minus ACB and eligible selling expenses.

Capital loss

Generally, ACB plus eligible selling expenses minus proceeds of disposition.

Realized gain

A gain recognized for tax purposes because the investment has been disposed of.

Unrealized gain

An increase in the value of an investment that has not yet generally been realized through a disposition.

T5008

Information slip reporting certain securities transactions.

Trading account

An investment account used to buy and sell securities.

Capital transaction

A transaction involving capital property.

Business income from trading

Income arising where securities trading is treated as business activity rather than capital investment, depending on the facts.