Spin-offs allocate your cost base between two companies, splits change your share count without touching total ACB, and takeovers roll your ACB into the acquirer's shares — with tax due only on any cash you receive. See exactly where your cost base lands. Nothing here is uploaded; it only lives in this page.
Multiply your total adjusted cost base by the allocation percentages the issuer publishes in its tax letter. That fraction becomes the cost base of the new-company shares; the rest stays with the parent. For example, Brookfield published the percentages for its 2022 asset-manager spin-off on its investor-relations site. A qualifying spin-off is not a disposition — no gain or loss is reported.
A split or consolidation changes only your share count. Your TOTAL adjusted cost base is unchanged — the ACB per share is what moves. A 2-for-1 split halves the per-share ACB; a 1-for-4 consolidation quadruples it. Splits never appear on Schedule 3.
Usually not, if you receive only shares of the acquirer: section 85.1 rolls your old cost base into the new shares automatically and no gain is realized until you sell them. The new shares inherit your OLD adjusted cost base — not their value on the day the deal closed.
The cash portion ("boot") is a real disposition. The common treatment is to prorate: the fraction of the total deal value you received in cash is treated as disposed at fair market value, producing a capital gain or loss now, and only the remaining ACB carries into the new shares. The share portion still rolls over.
From the issuer: companies publish a tax letter or FAQ on their investor-relations page with the exact percentage of ACB to allocate to each entity (often with both a Canadian and a US version — use the Canadian one). Your broker's book value after a spin-off is frequently wrong, so keep the letter with your tax records.
Educational information, not tax advice. Deal structures vary — always check the issuer's tax letter and confirm reporting with a qualified accountant.
Record a split, spin-off, or merger once and Sched3 adjusts your share counts and ACB in date order across every holding, superficial-loss check, and your Schedule 3 export — including the taxable gain on merger cash.
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