GREY:ALARF - Post by User
Comment by
mickeymouseon Sep 01, 2020 2:18pm
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Post# 31487688
RE:RE:Getting pretty intriguing...
RE:RE:Getting pretty intriguing...If you are in Canada and hold this in a TFSA or RRSP the increase in distribution will be a benefit as you can't claim a dividend tax credit in registered accounts anyways. In a non - registered account there will be a return of capital component to the distribution - this will reduce your adjusted cost base on your equity - when you sell your units this will increase your capital gain on the sale - but capital gains are taxed at a lower rate than dividends - part of the distibution will be considered income which has no tax benefit so hopefully the tax credit lost for the dividend will be balanced out by the lower rate applied to the capital gain.