Comments on: Black Gold Income Trust http://investingincanada.info/2009/09/black-gold-income-trust.html Canadian Stock Talk Fri, 07 May 2010 12:34:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Smac20 http://investingincanada.info/2009/09/black-gold-income-trust.html/comment-page-1#comment-480 Smac20 Sat, 30 Jan 2010 18:39:56 +0000 http://investingincanada.info/2009/09/black-gold-income-trust.html#comment-480 That is the same way I see it. Holding the trusts currently in your main account does provide the best benefit from the flow through, but you still are taxed on the dividends. However, my thought is that everyone knows the new tax rules are coming so the trusts are already beginning to be valued from the new tax perspective. If you move the shares to your tfsa of rrsp after the new rules are in place you either need to sell for a capital gain/loss or use up valuable credits or tfsa room. I made my purchases near the armpit of the market and my though was that placing them in my tfsa immediately would allow me to move around the previous scenario. A number of investments advisors that I have been in discussions with have also recommended this strategy. That is the same way I see it. Holding the trusts currently in your main account does provide the best benefit from the flow through, but you still are taxed on the dividends. However, my thought is that everyone knows the new tax rules are coming so the trusts are already beginning to be valued from the new tax perspective. If you move the shares to your tfsa of rrsp after the new rules are in place you either need to sell for a capital gain/loss or use up valuable credits or tfsa room. I made my purchases near the armpit of the market and my though was that placing them in my tfsa immediately would allow me to move around the previous scenario. A number of investments advisors that I have been in discussions with have also recommended this strategy.

]]> By: Al http://investingincanada.info/2009/09/black-gold-income-trust.html/comment-page-1#comment-478 Al Sat, 30 Jan 2010 18:05:37 +0000 http://investingincanada.info/2009/09/black-gold-income-trust.html#comment-478 In the article you mentioned that due to the new income tax laws pertaining to income trusts that income trusts are more suited to be held in a tax sheltered account. Isn't it the other way around? I would have thought that the current laws would have best suited holding the trusts in a tax sheltered account. Due to the income flowing through tax free from the corporations to the individual as income. after the changes come into affect next year, the tax sheltered investor will realize only an after tax distribution. Just my thoughts, would love to hear your opinion on this. Thanks in advance for your help. Al In the article you mentioned that due to the new income tax laws pertaining to income trusts that income trusts are more suited to be held in a tax sheltered account. Isn’t it the other way around? I would have thought that the current laws would have best suited holding the trusts in a tax sheltered account. Due to the income flowing through tax free from the corporations to the individual as income. after the changes come into affect next year, the tax sheltered investor will realize only an after tax distribution.

Just my thoughts, would love to hear your opinion on this. Thanks in advance for your help.

Al

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