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H&R Real Estate Investment Trust T.HR.UN

Alternate Symbol(s):  HRUFF

H&R Real Estate Investment Trust is a Canada-based real estate investment trust. The Company owns, operates and develops residential and commercial properties across Canada and in the United States. The Company operates through the four segments: Residential, Industrial, Office and Retail. The Residential segment consists of approximately 24 residential properties in select markets in the United States and its portfolio comprises 8,166 residential rental units. The Industrial segment consists of 66 industrial properties in Canada and two properties in the United States comprising 8.7 million square feet. The Office segment consists of 17 properties in Canada and three properties in select markets in the United States, aggregating 5.5 million square feet. The Retail segment consists of 34 properties in Canada, which are single tenant properties as well as two single tenant retail properties and one multi-tenant retail property in the United States.


TSX:HR.UN - Post by User

Comment by llihevad1on Dec 22, 2024 6:55am
22 Views
Post# 36374062

RE:Do the math!

RE:Do the math!I agree with the comment that you need to be strategic in your holdings of H&R. With the current special distribution having a large non-cash payment does cause a potential for taxes being paid prior to recovery.

A comment on your math:

The $10,000 inclusion leads to an increase in the adjusted cost base of the units held.

So in your scenario you would pay $5,000 tax, but the adjustment to the unit cost does not get taxed again as capital.

Buy 10,000 units at $9.40
Special dividend is declared of $0.60
Other income generated of $6,000 tax paid $3,000.
At this point your cost on the units moves from $9.40 to $10.00

Market goes on and the unit price moves to $10.10

Sell 10,000 units

unit price sold for $10.10
Cost of units         $10.00
Gain                          0.10

Under this scenario you would recover 100% of your taxes paid and would only be required to pay capital gains tax on money earned.



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