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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Richard Gibbons who wrote (274)	12/31/1999 8:55:00 AM
From: David Culver	Respond to of 11633

Most of the tax is deferred as a return on capital which generally increases the capital gain. The remaining is other income.

To: Richard Gibbons who wrote (274)	1/1/2000 1:45:00 PM
From: Ally	Respond to of 11633

Revenue from REITs are taxed as other income. Dividend tax credit does not apply. However, there is deferred tax advantage since portion of the distribution is depreciation, and is not taxable. Instead, the depreciation portion lowers the adjusted cost base. So, unless you sell a REIT, there is no taxable capital gain. REITs are a great income source, especially for retired people. You collect rent regularly and only a portion of your rent received is taxable, meantime, you get professional management of your real estate holding. Instead of owning rental real estate and dealing with all the headaches of a landlord, simply buy a REIT... especially these days, when most of them are on sale. SMU is still one of the best out there in terms of rate of return. Note that REITS are not growth vehicles... thus only people with income objective should be buying them.