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Hello,
In terms of new REIT's, S25BB of the Income Tax Act applies.
In terms of this extract from that seciton:
"Furthermore, any amount received or accrued during a year of assessment by a REIT or a controlled property company in respect of a financial instrument (other than a share in a REIT, a controlled property company or an associated property company) is deemed to not be of a capital nature and must be included in the income of the REIT or that controlled property company."
Does this mean if a REIT sells any share that it has as an investment, that it must include the proceeds 100% in income, and be taxed as if the proceeds on the disposal are normal income?
Thanks
In terms of new REIT's, S25BB of the Income Tax Act applies.
In terms of this extract from that seciton:
"Furthermore, any amount received or accrued during a year of assessment by a REIT or a controlled property company in respect of a financial instrument (other than a share in a REIT, a controlled property company or an associated property company) is deemed to not be of a capital nature and must be included in the income of the REIT or that controlled property company."
Does this mean if a REIT sells any share that it has as an investment, that it must include the proceeds 100% in income, and be taxed as if the proceeds on the disposal are normal income?
Thanks