TSX:RPI.UN - Post by User
Comment by
lotus1on Feb 11, 2019 10:02pm
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Post# 29350605
RE:RE:RE:RE:2018 T3
RE:RE:RE:RE:2018 T3I reviewed the T3 slips for 2018.
The distributions paid for the 1st five months of $0.11 each and a portion( $0.00442) of June distribution are "Capital Dividends", which are "Non Reportable" distributions for Tax Purposes ( No Tax to be paid by unit holders). Remaining distributions for the year 2018 are "Return of Capital". Looks like a one time event, but certainly a bonanza for us.
What is a Capital Dividend ?
Capital dividends are a form of return of capital to a shareholder of a corporation and are, therefore, distributed to shareholders tax-free.The capital dividend account, in simple terms, comprises of the non-taxable portion of certain types of income that the corporation has earned. For instance, only 50% of a capital gain is taxable, thus, if a corporation has a capital gain of $100,000, $50,000 would have been taxable and $50,000 non-taxable. The non-taxable amount would be added to the corporation's capital dividend account at the end of the corporate year end, and a tax-free capital dividend could then be issued for up to that amount to the corporation's shareholders.