TSX:ONR.UN - Post by User
Comment by
nijinsky70on Oct 27, 2011 5:38pm
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Post# 19187912
RE: RE: Taxes update- Nijinsky
RE: RE: Taxes update- NijinskyHello Firesole3 my friend, it's not as simple as pointing the page numbers out to me isn't it?
Anyway, I think I found what I was looking for on page 34 in the paragraph that starts off with "The aggregate adjusted cost base of New Open Range Shares received......" I was at the dentist this afternoon, trust me, reading this is lot more painful. At least with the dentist I don't get a headache afterwards.
Just to refresh everyone's memory on what the issue was. I was looking for direction on how to establish what the post split adjusted cost bases of new ONR and PSN should be. We all need that information since if we sell either stocks, we have to pay the government something, right? For example, if my current adjusted cost base for old ONR is, say $10, I need to find out how to split that between new ONR and PSN (e.g., $3 and $7, $2 and $8, or whatever). Simple enough.
So according to this paragraph, the adjusted cost base for new ONR is the fair market value of new ONR at the time of the transfer. And then, the adjusted cost base for PSN is the difference between your old ONR and new ONR. Rather strict forward, isn't it?
Well this sounds reasonable to me, but I do have questions. Mainly, who determines what the fair market value of new ONR is? By it's name I guess it would be the closing market price of new ONR on its first day of trading (just my guess). If that's the case, would it not be smart to pump up the closing price of new ONR on that date of transfer (presumably the first day of trading) to make it as high as possible? We all need a low adjusted cost base for PSN since everyone thinks it's a real winner. Who neeeds to pay more tax to the government?
Anyway, please read that ONE parapraph and see if you agree with my interpretion of the "legalese" it was written in. I think my chat with my chartered accountant friend is helpful. Why don;t we just wait for our brokers to tell us what it is? Less headaches that way. LOL.