Book cost & Market value on quaterly report RSSP of a TN

tony · Post by **tony** » Thu Oct 20, 2016 10:45 pm

I have a RSSP account (from IG) producing quaterly report with a book cost value.
1. Do I still need to sell & buy again to minimize tax by IRS?

However, my another RSSP account (with manulife) produce quaterly report but no book cost value.
2. Do I still need to sell & buy again to minimize tax by IRS for this RSSP?

I am totally confused with this selling & buying.

nelsona · Post by **nelsona** » Fri Oct 21, 2016 6:39 am

1. Yes, if the book value is less than the market value. you are on the hook, in future, for the the increase from book value.
2. Same answer, but now YOU need to determine the book value.

tony · Post by **tony** » Fri Oct 21, 2016 4:43 pm

for item number 2, (manulife said there is no book cost - this is registered fund in Canada - no tax in canada, so book cost only applies to stocks) Does it mean that I have to calculate manually? How can IRS believe what I calculate? how will they verify if I lie or not? How to justify the number if there is a disagreement?

nelsona · Post by **nelsona** » Sat Oct 22, 2016 9:44 am

Manulife's answer was of course ridiculous. EVERYTHING has a cost.

nelsona · Post by **nelsona** » Sat Oct 22, 2016 9:52 am

How else would you or they determine your account performance?
So you will have to calculate it manually. IRS will accept this. Do it now while you still have the records, and then put it away untul you start collapsing your RRSP.