TSX:AD.DB - Post Discussion
Post by
ace1mccoy on Apr 26, 2021 5:16pm
Best Inside Registered Accounts
A big whack on taxes.
Q: I have held Alaris pre conversion for some time now in a taxable account . Since the conversion to a UN , now tax wise I am wondering whether it makes sense to even hold it in a taxable account. I am considering selling for those reasons.
Could I ask for your opinions in regards to AD.UN specific composition for Canadian income tax purposes?
Thanks
5I Research Answer: 2020 trust tax info is
here. After the conversion, most income is now trust income, with return of capital as a smaller percentage. Assuming this stays the same, for most investors a registered account is likely best. However, the tax benefit of the return of capital component (which lowers ACB and switches tax to capital gains) is lost in a registered account. Still, for the majority, a registered account is still likely best.
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