RE:RE:RE:RE:RE:RE:RE:Received the Special Distribution ...The ACB on my HR shares went
DOWN by about 22 cents. So I will in fact pay higer capital gains later on and capital gains now, if the shares are help outside an RRSP, TFSA. The ACB going down makes sense, we were given .63/share, as a distribution of capital gains and the number of shares effectively stayed the same so your cost per chare decreases.
my2pennies wrote: For an non tax sheltered account the 0.63/share special dividend is an upward ACB adjustment that will lower your future capital gain tax when you sell. It also will hit your 2021 tax year as an immediate capital gain. The other 0.10/share in cash ismeant to help pay for the additional 2021 tax burden the 0.63/share will cause outside a tax sheltered account. So in summary...you aren't getting any more HR shares. They really shouldn't call the 0.63/share a distribution as people think they are getting something instead of it costing them something. If you had a lot of HR and have a high income this is gonna rrally up your 2021 tax bill by quite a bit, and the 0.10 per share won't come close to covering it. It's one reason so many people dumped HR from their cash accounts once the announcement of the spot was made.
born2trade wrote: My understing was that all shareholders on record Dec 31 receive the special dividend of $0.63 a share in additional shares. If investment is held in non-registered accouts , then it can be used to pay the tax Othersiwe , it is additional shares that can be sold later if held in TFSA or RRSP. Did I miss something?
my2pennies wrote:
The 0.63 isn't actually any type of payment or stock issuance to you...it's actually just a future tax bill (if held outside of a TFSA or registered tax shelter retirement account.