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

Special Distribution - Different point of view

[llihevad1]

I hear what you are saying but depending on when you purchase it can be very advantageous to own outside a RRSP or TFSA.

At the current price an ACB bump to the unit price of $0.60 would only require the price recovering by that amount to have it become a tax free payment when you sell. Which can be used to offset the tax bill.

I have added to my holdings outside over the last little while and will to the end of the year at the current price.

GLTA

[jmkOttawa]

But you will pay tax this coming April on 72 cents of additional income, even though you only received 12 cents. There is no positive way to look at this unless you have very little income in 2024 and the extra 72 cents is not taxed, and then when you sell, the increased ACB saves you tax.

[llihevad1]

My opinion, That is four months from now The price has been driven down to a level that gives a very opportunistic risk reward proposition... I am in the 54% tax bracket as well and my spouse is in a lower one... I am also expecting an increase in the monthly distribution.. GLTA

[Aldoal]

 Just wondering, I am vague on this issue of the special div, can we expect the unit price to decrease by the div amount after the div is paid,, tia

[TeamCommonSense]

No impact on unit price ... cuz units issued and then immediately consolidated. So only 2 impacts .... increase in yr tax bill and yr ACB of HR.un holding ..... if holding in non registered account.

[garyreins]

I thought a capital gains distribution can be used to write up your ACB. If it's put on as income then it seems like it's not right. But Im not a tax guy

[jmkOttawa]

For some reason, HR declares it as other income but only gives you the ACB increase to offset