Summit Industrial Income REIT Unit SMMCF

RE:special distribution

[CanSiamCyp]

bychoice:

Not really sure ... but the way that they are describing the closing transaction, it sounds as if the entire $23.50 wll be classified as a cash special distribution. You will then have to wait until you receive your brokerage T3 next year to see the actual breakdown. Summit did alert unitholders in advance that they anticipated that approx. $2.10 of the $23.50 total would be Other Income ... taxable at your highest marginal tax rate ... and the balance would be essentially return of capital (i.e., to be applied against the ACB in determing Capital Gain upon liquidation.

So if you are holding SMU.un in a taxable account ... as I was ... I suggest you liquidate it pronto to avoid the tax issue/complication. I was not sure which way the unit price would move so I sold out at $23.20 on Monday. You are lucky ... you can sell today at $23.44 or so ... why take a risk on the tax loss when you can sell today and capture the whole shebang as Cap Gain?

FYI: SMU just declared the breakdown of their 2022 distribution total .... 100% Return of Capital. So that is good news too! 2022 tax burden untouched ... 2023 Cap Gain increased to the max.

Cheers!