ETF Phantom Distributions and ACB: What Canadian Investors Must Track
Phantom distributions are taxable income from ETFs that were never paid out in cash. They increase your adjusted cost base and are often missed by broker book value records.
Guides for Canadian ETF and DRIP investors tracking return of capital, phantom distributions, reinvestments, and ACB changes.
Practical guides on etf and drip investing for Canadian taxable investment records. Use the worked examples to review your assumptions, then check a scenario with the free investor tools .
Phantom distributions are taxable income from ETFs that were never paid out in cash. They increase your adjusted cost base and are often missed by broker book value records.
Every DRIP share purchase adds to your adjusted cost base. Miss even a few years of DRIP transactions and your ACB is understated — which means you'll report more capital gain than you owe.
Learn how ETF return of capital, T3 Box 42, issuer tax factors, DRIPs and changing unit balances affect adjusted cost base in a Canadian taxable account.