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Some trust units I held in a taxable account have rolled over into a corp. Deemed disposition or is there another rule at play here? I've not heard anything in the media about this, and if it were deemed disposition, you'd think some reporter would be writing about it? :confused:
 

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deemed disposition?

Any of the trusts I owned that converted noted in their news release discussing the transformation that it would be a non-taxable event for unit holders.

So far I haven't heard of any that were a deemed disposition but there might be some that are.
 

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Some trust units I held in a taxable account have rolled over into a corp. Deemed disposition or is there another rule at play here? I've not heard anything in the media about this, and if it were deemed disposition, you'd think some reporter would be writing about it? :confused:
I suspect it will be the same as when I "inherited" trust units as corporations converted. At that time, the broker sent notices to file which option, "deemed disposition" or "tax deferred exchange". Unfortunately, until it was too late, I didn't notice that the default was deemed disposition so I had to report the capital gain.

Here is a link to the Enerplus Resources Fund notice about conversion:
http://www.newswire.ca/en/releases/archive/September2010/30/c6546.html

Here is the key part:
"Enerplus expects the transaction to be considered a tax deferred exchange for Canadian trust Unitholders. Holders of EELP Exchangeable Units would be able to elect to have the transaction effected in a tax-deferred manner. For U.S. investors, the exchange should qualify as a tax deferred reorganization and as such no gain or loss would be recognized."

I'd recommend checking the former trust's web site and with your broker.
 

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Any of the trusts I owned that converted noted in their news release discussing the transformation that it would be a non-taxable event for unit holders.

So far I haven't heard of any that were a deemed disposition but there might be some that are.
I haven't either but having been burned on the conversion from corporation to trust unit, I'm paying closer attention than the last go round.

Then too - until the approvals are all in, I suspect the information circular will have a disclaimer such as the one below.

"This information is not intended to be, and should not be construed as tax advice and investors in both Canada and the U.S. should consult with financial advisors, legal counsel or accountants regarding the tax consequences of the exchange and any subsequent dividend payments received from Enerplus Corporation post conversion."
 
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