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

To: Gold Panner who wrote (3085)	3/30/2002 11:01:17 PM
From: Scott Mc	Respond to of 11633

You show the rights at cost $0.00 and then what you dispose of them at, the diff is considered a capital gain, Scott

To: Gold Panner who wrote (3085)	3/31/2002 2:55:26 AM
From: Peter W. Panchyshyn	Respond to of 11633

I would like to know how you would account for taxes if you just sold the right's off and took the cash? --------------- Scott's answer to you is correct. For those rights that you got from the trust for your units held prior your rights cost is 0 and your capital gain would be what you sold the rights for. If in addition you did any trading of them (as I did) when they were trading on the exchange. Would work similar but your cost would then be what you payed for them. Then your gain would be what you sold them for minus what they cost -------------- I am fairly happy how it (right's offering for SDT.UN) has performed --------------- Both the rights and the trust units have done extremely well in the last 6 months. Up some 30% plus for the units (upon conversion). And with trading them triple digit gains (for those able to stomach the swings and follow them closely). This trust of trusts (as well as EIT.UN) has done a number of these rights and warrants over the years. To varying degrees they have been something to definitely take advantage of. As my earliest posts regarding these called them special situations that unitholders longer term should seriously consider partaking in At the very least you get more units at no cost to you on conversion (this absorbed by the trust itself). And at the most you can trade them. The management seems to know just when is the right time to do these rights and warrant issues for maximum benefit not just for the trust but for unitholders as well. As a look to the past issues I related to this board all have maintained their premium to conversion. Now A number of posters have raised concerns about these trusts of trusts. In particular is the paying of management fees twice. Once to the trust of trust and second to the trusts held. By these trusts of trusts giving out the rights and warrants and as well being able to trade them more than offset the double management fees. As the simple math of it would clearly show. -------------