Adjusted Cost Base

How do I calculate the Adjusted Cost Base of my Units? 

Each unitholder’s adjusted cost base (“ACB”) calculation may be considerably complex.  It is the sole responsibility of each unitholder to calculate the ACB of their units.  Unitholders should consult their own tax advisors if they have any questions concerning the determination of their ACB.  Penn West is unable to provide assistance in determining unitholders’ ACB outside of the information generally provided to the public.

The ACB is used in calculating capital gains or losses on the disposition of trust units held as capital property by a unitholder. The ACB of each trust unit is reduced by the amount of distributions received as a return of capital to date on that unit. When a Canadian taxpayer's ACB drops below zero during a taxation year, the negative amount is considered by CCRA (Revenue Canada ) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying capital gains tax on the negative cost base portion.

To calculate your adjusted cost base, use the formula below:

 

 

Canadian unitholders, please click here to see 2007 Taxation information, or click here to download a printable version.

U.S. unitholders, please click here to see 2007 Taxation information, or click here to download a printable version.