Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

CAPITAL GAINS

[garyreins]

If you had 100k capital gains that is impacted by the inclusion rate change, it likely costs an additional 7k in profits to trudaue or 7% (obviously depending on tax bracket), which is pretty much how XRE sunk through june.  So it you align the amounts its somewhat reasonable.

The question is, is this sell off reboundable, given every stock is less favorable now with this change, if you are a corporation

[Torontojay]

There are no capital gains for reits only losses. 

[garyreins]

Not true if they bought during covid crash, plus some reits it's return of capital which brings down your ACB. 4 years of return of capital dividends adds up.   Or second order effects.. if someone booked a 500k profit in apple they need to sell their dogs to offset it. Or raise capital for tax bill next year.  

[Torontojay]

I don't  believe the capital gains tax increase is the reason for the decline.   If you purchased shares for the first time this year, you are a bag holder. I believe reits could get even cheaper in late fall when tax loss season is upon us. They will sell their losers to offset the amount of taxes they have to pay. Then purchase it back after 30 days to avoid triggering a

[garyreins]

The tsx and canadian reits dont arbitrarily just go down from US markets because they are "tsx listed" despite potentially having US exposure.  The timing is just a little too coincidental leading up to the 2 weeks June 25