TSX:NWH.DB.G - Post by User
Post by
DanielDardenon May 28, 2023 2:41pm
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Post# 35467944
Return of Capital
Return of Capital First, it is only relevant in non-registered accounts where a T3 is provided by your broker. Anybody holding this in a RRSP or TFSA is not affected. In a trading account the ROC is not taxable immediately, therefore is favourable tax wise.
Any co. with much non-cash expense for tax purposes only will have ROC as part of their dividends/distributions when it’s payout exceeds it’s net income. This is common where CCA (depreciation) is expensed to reduce taxable income. Most (if not all) REITs do this so ROC is very common to some degree.
That is why cash flow is a better indicator than net income.
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