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.