1. What is Adjusted Cost Basis Per Share?

Adjusted Cost Basis (ACB) per share represents the average cost of each share in an investment portfolio after accounting for various adjustments such as commissions, fees, and corporate actions. It is a crucial metric for calculating capital gains or losses when selling investments.

2. How Does the Calculator Work?

The calculator uses the simple division formula:

Where:

• \( Total\ ACB \) — Total adjusted cost basis in dollars
• \( Shares \) — Total number of shares owned

Explanation: This calculation provides the average cost per share, which is essential for tax reporting and investment analysis.

3. Importance of ACB Calculation

Details: Accurate ACB calculation is essential for determining capital gains tax liability, making informed investment decisions, and maintaining proper financial records for tax purposes.

4. Using the Calculator

Tips: Enter the total adjusted cost basis in dollars and the total number of shares. Ensure both values are positive numbers (total ACB > 0, shares ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is included in Total ACB?
A: Total ACB includes the original purchase price plus all commissions, fees, and adjustments from corporate actions like stock splits or dividends.

Q2: Why is ACB per share important for taxes?
A: It determines your capital gain or loss when selling shares. Selling price minus ACB per share equals your taxable gain or loss per share.

Q3: How does ACB differ from purchase price?
A: ACB includes additional costs beyond the basic share price, making it a more comprehensive measure of your actual investment cost.

Q4: When should I update my ACB calculations?
A: Update ACB after every purchase, sale, or corporate action that affects your share count or total investment cost.

Q5: Can ACB per share change over time?
A: Yes, ACB per share changes when you make additional purchases at different prices or when corporate actions occur.