RE:RE:RE:RE:RE:RE:Tax situation
thesheet wrote: Regarding the dividend tax credit, I assume the RUF is eligible even though it gets its income from the US?
Correct, as a Canadian corporation, it is theoretically able to for pay out dividends eligible for the Canadian dividend tax credit.
However, that depends on the type of distribution it is paying out.
But, RUF does not pay out eligible dividends.
Its distributions are a mix of ROC, interest, and foreign dividends, which are not eligible for the Canadian tax credit.
Refer:
https://www.puremultifamily.com/investor-info/income-tax-information
This is typical of the vast majority of REITs.
I can't think of any Canadian REIT that pays out eligible dividends.
If some do, the % must be really small.
REITs typicall pay out ROC and interest income.
If it's elligble for the dividend tax credit, how about the enhanced dividend tax credit?
Since the payouts are not eligible dividends, the enhanced dividend tax credit is not applicable either.