T1135: cost amount at end of year is 0 if shares are sold, correct?

Yes, If the taxpayer has sold all of their shares in a foreign corporation during the year, then their cost amount for those shares would be zero. This is because the cost amount of shares is the amount that the taxpayer paid to acquire them, and if the shares have been sold, the taxpayer no longer owns them and therefore no longer has a cost amount for them.

The cost amount (also referred to as the adjusted cost base) generally refers to the purchase price.

During the year, you may have purchased and sold various properties within the category. Consequently, the "Cost amount at year-end" and "Max cost amount in 2021" may be different. If you didn't buy or sell anything, then those amounts should be the same.

E.g. At the beginning of the year you have three properties where the cost was $1000.

• You purchased property 4 at $150
• Then you sold one of the properties, where the original cost was $10.

Therefore, your Max Cost Amount in 2021 would be $1150, but your Cost Amount at Year End is $1140.

 

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