RE:RE:RE:RE:Beautiful!As a newbie to this kind of transaction, I appreciate your kind offer of help. I understand that I am completely responsible for my own due diligence, and that you will not be providing any acutal investment/tax planning advice.
Please let me know if my understanding of the special distribution sounds correct and complete, or if not, let me know where I have it wrong:
- The special distribution of $5 in units plus $0.48 in cash is all treated as capital gains for tax purposes, whereas the regular dividend of $0.15 is treated as a dividend for tax purposes.
- Therefore I can expect to pay a lot more tax on the special distribution than I would on a dividend, assuming I don't have some offsettng capital losses or some tax sheltering (as in a TFSA).
- Having said that, it still looks as if the special distribution offers a pretty hefty return on what is potentially an investment for a month or two.
Thank you.