#54 Cannot track profit/loss correctly for Canada

Gord Tomlin

In Canada, when you sell part of your holdings, you cannot select a lot from your holdings and calculate your profit and loss based on that lot. All your holdings in a particular stock are considered to be one pool of identical assets, and gain/loss is calculated based on the average cost of the entire holdings of the stock.

If the folder representing the entire holdings of a stock is selected, jStock does not allow a sell transaction for less than the entire holdings. If a particular lot is selected, jStock calculates the gain/loss on the sale based on that lot's cost. This causes incorrect results for use in Canada.


  • yccheok

    yccheok - 2009-10-03

    I am not quite understanding your description detail? Can you please provide a real scenario example to show the problem?

  • Gord Tomlin

    Gord Tomlin - 2009-10-05

    OK here is a sample scenario:
    1. enter a buy transaction for a ticker - 100 shares at $50
    2. enter a second buy transaction for the same ticker - 100 shares at $60
    At this point you have a folder for the ticker showing a total net purchase value of $11,000 and two lots within the folder having net purchase value of $5,000 and $6,000 respectively.

    Under Canadian tax law, all of these shares in the same stock are considered to be "identical assets". For example, if the stock in question was Research in Motion (RIM.TO), there is no difference between a share of RIM.TO bought in the first transaction and a share bought in the second transaction. Thus, for Canadian tax purposes, each share in the example has a cost base of $55. There are not two separate pools of shares with different costs. This means that if you sell 100 shares of the 200, the cost base of these shares is $5500, and the gain or loss is based on the difference between the proceeds of the sale and $5500.

    Hope that helps.

  • yccheok

    yccheok - 2009-10-08
    • status: open --> closed-wont-fix
  • yccheok

    yccheok - 2009-10-08

    OK. I understand your concern. I am doing this portfolio feature from an accounting point of view. Every single unit of debit, must match with a single unit of credit.

    We can easily group two buy transaction of a same ticker into single pool. (In your case, you will see 200 shares with cost $55). When performing sell, you just know that you are selling share from that single pool. However, you will have no idea the shares is selling out from "100 shares at $50" or "100 shares at $60"

    We may do this to full-fill your requirement. However, we will break the expectation of other clients. They prefer to see their every transaction line in to micro details level.

    Hence, unless we can think of a better way to overcome this, I will put this as won't fix. Sorry about that.

  • yccheok

    yccheok - 2009-10-08
    • status: closed-wont-fix --> open-later
  • yccheok

    yccheok - 2010-06-05
    • status: open-later --> closed-wont-fix