Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

RE:RE:RE:RE:RE:RE:Hawk35 What did you decide?

[bcsc]

Red_Deer wrote:

borne2run wrote: red_deer, that's why investors should buy CHE.un for their RSP or TSFA accounts.
No dividend credits for those accounts.
So 8% interest is equivalent to 8% eligible dividends.

Borne2Run__absolutely RIGHT!!!!!

In any Non Registered regular trading accounts the difference can be HUGE.

I just ran the numbers back thru my Tax Software__for 2017 the result was that
for every $10000 of distributions received I got $1387.56 LESS__compared to
IF all of the distributions had been Eligible Dividends__rather than the usual
Non-Elibible Dividends, Foreign Income and Other Income.

Over the 9 years I have had my Chemtrade this really ADDs UP__to the tune of
$12488 LESS for every $10000 of distributions!!!!!!!!!!!!!!

However the ONLY true way to AVOID this would be to have ChemTrade ONLY in
your TFSA__since RRSPs are ONLY a Tax DEFERRAL__you end up paying the
TAX on all that Protected Income when you are forced to start taking it all out each
year past 71 years of age.

But you never recieve the dividend tax credit  if held in your RSP so the tax advantage is lost. It could be argued that holding an equity that pays eligible dividends in your RSP is a disadvantage since tax has already been paid at the corporate level (the source of the dividend tax credit)..