A company I hold stock in was acquired or merged—do capital gains apply? + MORE Aug 8th

How to go about securing the best return for your investment in Canada.
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The best cash back credit cards in Canada for August 2023

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The best cash back credit cards in Canada for August 2023
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Ask MoneySense
A stock I used to own was recently sold to a private equity firm. Is there a strategy for avoiding a capital gain on a sale I did not authorize? I voted against the sale.—Mary

Tax implications of acquisitions, mergers and spinoffs

There are a few transactions that can have unintended tax consequences for an investor even if they have not sold their shares, Mary.

When a company is acquired, like the one you owned, capital gains may or may not be triggered. When a publicly traded company is “taken private” and all outstanding shares are purchased, this is generally a taxable transaction that would trigger capital gains (or capital losses, if the acquisition price is lower than your adjusted cost base).

When a company is acquired, shareholders may receive cash, like you presumably did, Mary. But they sometimes receive shares of the acquiring company, or a combination of cash and shares. When shareholders receive shares of the acquiring company, they may be able to defer some or all of their capital gain and have their adjusted cost base transferred to the new shares…

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The 16 best credit cards in Canada for August 2023
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MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

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The best high-interest savings accounts in Canada for 2023
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Why trust us

MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

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The 7 best student credit cards in Canada for August 2023
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Why trust us

MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

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