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2009
2009 Tax Information
(based on payable date)
Tax info for Corporations is
reported on a Canada Customs & Revenue Agency T5 Form. The T5
Form is produced by the broker and mailed to the investor no later
than February 28. Please contact your broker regarding T5 enquiries.
Types of
Income Earned
- Capital gains
are taxed at much lower rates than interest income, dividend
income and foreign source non business income. The capital gains
inclusion rate was 50% for 2009. The T-3 or T-5 you receive from
your investment dealer will show the breakdown of the capital
gains received from any of the Quadravest products.
- Eligible Canadian Dividend Income
received from Canadian companies is taxed at a much lower rate
than interest income. This is because the corporation has
already paid tax on its earnings before paying a dividend to the
Fund. On your tax return, you actually report a grossed-up
dividend and then claim an offsetting dividend tax credit. The
T-3 or T-5 you receive from your investment dealer will show the
breakdown of the dividend income received from any of the
Quadravest products.
- Return of Capital (Non-taxable) distributions
received must be used by the investor to reduce the adjusted
cost base (ACB) of their shares/units. This will impact the
capital gains realized by each investor upon any future
dispositions of the shares/units. As an example, if a 50 cent
per unit non-taxable distribution was received during the year,
the investor would reduce the cost base of each unit by 50
cents.
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