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Bullboard - Stock Discussion Forum North American Financial 15 Split Corp T.FFN

Alternate Symbol(s):  FNCSF

North American Financial 15 Split Corp. is a mutual fund corporation, which invests in a portfolio of over 15 financial services companies. It offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends, the amount of which is... see more

TSX:FFN - Post Discussion

North American Financial 15 Split Corp > Tax Implications - Sell or Retract
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Post by maxjac on Dec 11, 2024 3:25pm

Tax Implications - Sell or Retract

For income tax (capital gain specifically), is there a difference when we sell FFN shares on the open market versus if we retract those shares through the special retraction right program?

For example, if one makes a capital gain (profit) of $10,000 by selling on the stock exchange, would the income tax due on this profit be more, less, or equal to having made the exact same $10,000 profit by retracting said shares?

Hope my question is clear enough... I'm really trying to see if there is a difference in taxation.
Comment by navgod on Dec 11, 2024 4:14pm
My tax accountant over the years has treated it the same as an open market sale.
Comment by freeparking on Dec 11, 2024 4:53pm
It shoud be the same other than you likely had a higher capital gain because the NAV price is higher then what you would have got at the current market price. Also, since the distributions are deemed as a return of capital you would need to calculate your net share price (or ACB) to determine your full capital gain.
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