T5008 question

[mrsTF]

Hi,
I have a cash account on TD web broker, and i got a T5008 slip for 2020 taxation year, which is a capital gain.
What i see in my account is a disposition of 34 shares from Boyd (the company i have shares from), but then acquisition, of the same 34 shares, on the same day, with the same price (all this done by the company, not me).
After this move i got a T5008 slip, saying that i had a capital gain of 4800 CAD (i bought them 4 years ago with 2.2k, now they are 7k).
Which is not true, because i did not sell them to have a gain.
The company had a corporate action last year, they changed their name or something like this, so they did this move.
I called TD and they say it is correct, but i am not sure..I tried CRA these days (and i will try at different hours), but i get disconnected.
Is this correct?
Thanks much!

 

[Naheulbeuck]

Is this correct?

Yes

It depends on the corporate action but they can trigger capital gains as in your case where it is considered that the cost basis is not transferred but that you actually sold the Fund units to buy the Corporation shares. The good news though is that the cost basis of your new shares is now the price you paid for it (7k) and therefore when you sell those shares you will either have a smaller gain or a loss depending on its value at the time of the sale.