RE:I don't get it.... "distribution in unit"????????????Baldstock:
Sorry for your OCD!
Google for relevant information on "non-cash distributions" a.k.a. "phantom distributions" occasionally paid out by ETFs (and this REIT it seems) and study as much as desired.
Essentially:
- you will not receive any cash for the $0.63 per unit non-cash component of the Special Distribution,
- this amount will be added to your 2021 taxable income, and
- this amount should be added to your ACB for HR.un
So using your example of owning 100 units of HR.un with a current ACB of $10
- there will be a non-cash distribution of $63 "paid" on 12 Jan 2022
- this amount of $63 will be added to the 2021 total of distributions from HR.un and appear on your 2021 T3 (primarily if not exclusively as a capital gain)
- the amount of $63 should be added to your ACB resulting in a unit ACB of $10.63
Not a very attractive proposition, is it?
Cheers!
baldstock wrote: Does distribution in unit affect my cost basis?
Lets say I bought 100 HR.UN Shares @ $10
so my cost basis is $10 per share and total amount of $1,000.
If I receive 0.63 of stocks means 3 shares for free right?
so is my total amount remain same which is $1,000
and total share increase from 100 to 103
so my averge cost basis goes to 1000 divide by 103?
or
my total amount increase and total share increase?
I dont get it. I dont like DRIP and I dont want my average goes up.
My average is under 9 and I dont want to see it goes up in my account
I have a OCD man!! i dont want to see two digit number for HR.UN