RE:RE:RE:RE:RE:According BenTan wrote: Agoracom wrote
"This will all depend on how much we can distribute as return of Capital to the shareholders. We are going thru return of Capital rather than dividend back the share to the shareholders since this distribution method is not taxable."
my understanding is that a return of capital distribution is a tax-free payment. Therefore, if this is the method of distribution, we do not own shares of the new company; instead, we get the cash equivalent. Am I reading this right?
Exactly the opposite,,, we do not get the cash, because it would be taxable,, but the shares are not immediately taxable, but become capital gains when you sell them.
Unless of course,, you hold them in your TFSA,,, like I do!! LOL