Hudson's Bay Co. HBAYF

Tax treatment

[estebancaballo]

Of the planned HBC share redemption for a Canadian shareholder? Deemed dividend?

[Maxmoe]

It's not a redemption, it's a takeover. I don't see a deemed dividend, but I'm no tax expert. Looks more like a capital gain within hbc on real estate sale and capital gain for me when I sell or tender my shares to a higher offer. Sadly, I own a few oil stocks to reduce my taxable gain. It's always better to have a taxable gain than a tax shelter. 

[nolipstick]

Need retained earnings to pay a dividend....LOL. Sounds like possible return of capital.

[Maxmoe]

Tax laws are not the same in Canada and USA. I don't care what the rules are in USA. By the way, investors pay taxes on dividends, but no tax is payable if it's a 'return of capital'. It does reduce the acb which will create a capital gain when the shares are sold. Capital gains are taxed far lower than dividends. Either way, I have NO problem paying tax on my investment returns