T3 slip - Box 42 - Adjustment of the cost base of a participation

Box 42 of the T3 slip represents a distribution or refund of capital from a trust. This has an impact on the value of the basic price of a mutual fund.

Please note that this represents a change in the outstanding capital for the mutual fund concerned. You must recalculate the adjusted cost base (ACB) of the mutual fund in question.

For more information, please read the CRA guide RC4169, entitled "Tax Treatment of Mutual Funds for Individuals".

For more information on this topic, please visit the following CRA link:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/completing-schedule-3/capital-gains-losses-information-slips.html

ID: 20211029092435CA.xml

Webpage: KPA390-20211029092435CA.htm

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