Summit Industrial Income REIT Unit SMMCF

Tax implications ...

[CanSiamCyp]

.... of the Special Distribution are spelled out in the Circular. Of the $23.50 Special Distribution to be paid out and estimated $2.10 of the total will comprise Other Income and/or Capital Gains. Units sold at market prior to the Arrangement Date will be subject only to Capital Gains taxation (i.e., net proceeds of disposition less the ACB at the time of the Arrangement Date).

[maypeters]

Thanks CanSiamCyp for posting this. I did read it in the circular but I am sure lot of folks would not have noticed had you not posted the same.  For those with registered accounts - no difference but huge difference in tax implication for taxable accounts.  GLTA

[CanSiamCyp]

You're welcome maypeters! I'm still holding our 7,700 units in our Margin Account cuz I feel the 3.5% differential cf. the $23.50 Arrangement Price is a bit steep. In fact, I have been buying SMU.un units with free cash in RRSP, TFSA and RESP accounts ... since I know that the deal will close by end of Q1 and therefore the return is better than the HISA option: 3.5% for 3 months is close

[maypeters]

Possible that the brokerages may not show the interest income.  I did not want to take the chance as 52% tax vs half that (offset by some losses) + save on the margin  (6.75% right now) right away swayed me to sell. I have zero doubts the deal will go through.  Maybe not bad to purchase in registered accounts where the gain can be tax free or deferred.  Nothing like higher