Paramount Resources Ltd T.POU

Taxes, $12 "return of capital" + $3 dividend = $15 special

[CrazyTrader]

distribution.   What does that mean for Taxes?    If I bought/buying POU shares $29.65 and then I'm paid $15 speical distribution.... what does that mean tax wise?

I pay tax on $3 dividend and my adjusted cost of share drops $29.64 - $12 = $17.65 ????


Anyone know?

[WillyGreen]

Crazytrader - yes. Wouldn't buy this to flip it out after the special dividend. You have to want to own and hold this name. Long term holders are rejoicing with a $12 return of capital. Some will use that $12 to buy more like I will. Others will say that they have reduced their exposure by 1/2 at these prices. 

[CrazyTrader]

Hi WillyGreen.   I'm wonder about how taxes will work.   I have similar issue with another stock that's doing a SIB for $12 which I bought for $8.    I don't have a clue how taxes will work.... on POU or FEC.   Here's a link to my other similar problem.    TSX:FEC Forum Post | CrazyTrader-36409829 | I tendered all my share. Still

[WillyGreen]

You can't have a negative acb. Will be taxed as a capital gain if it goes negative. As for pou, $15 special and $12 is tax free. Reduced the acb of your pou shares by $12. Will pay tax only if and when you sell at a price higher than your new acb.