I read the following link:
http://www.milliondollarjourney.com/income-trust-distributions-and-taxation.htm
Although it was informative about where the money for the distribution comes from, and it gave some good examples of how various companies structure their dividends, it did not really show how the various forms would be taxed.
Especially when held in a non-registered account.
Like in the first example used: Arc Energy Trust, 97% income/interest, 3% return on capital.
Am I right then in assuming that if you were to have received $100 in dividends over the year, that $97 would be taxed at your marginal tax rate, and $3 would also be taxed at your marginal tax rate?
Any help in showing how the 3 examples in the link would be taxed in a non-registered account would be helpful.
http://www.milliondollarjourney.com/income-trust-distributions-and-taxation.htm
Although it was informative about where the money for the distribution comes from, and it gave some good examples of how various companies structure their dividends, it did not really show how the various forms would be taxed.
Especially when held in a non-registered account.
Like in the first example used: Arc Energy Trust, 97% income/interest, 3% return on capital.
Am I right then in assuming that if you were to have received $100 in dividends over the year, that $97 would be taxed at your marginal tax rate, and $3 would also be taxed at your marginal tax rate?
Any help in showing how the 3 examples in the link would be taxed in a non-registered account would be helpful.