Comments on: How To Pick Oil And Gas Trusts http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/ A Vancouverite's journey to financial freedom. Fri, 12 Mar 2010 05:09:46 +0000 http://wordpress.org/?v=2.1.2 By: The Financial Blogger http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-462 The Financial Blogger Thu, 19 Jul 2007 10:22:21 +0000 http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-462 I wish I had money when Harvest dropped to $24... now it's back to 34$... too bad! I would like to have your opinion on something; What is going do happen once trusts will have to pay taxes? Most of them are distributing almost all their profits as they are not paying taxes on them... I wish I had money when Harvest dropped to $24… now it’s back to 34$… too bad!
I would like to have your opinion on something; What is going do happen once trusts will have to pay taxes? Most of them are distributing almost all their profits as they are not paying taxes on them…

]]> By: Financial Jungle Guy http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-466 Financial Jungle Guy Fri, 20 Jul 2007 05:07:09 +0000 http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-466 I think it depends on the trusts. Trusts with a high proportion of return of capital in their distribution are less affected by the tax ruling. Some trusts may postpone their distribution hikes in order to build a buffer in their cash-flow. This extra will help offset future tax obligations. Others will probably cut their distribution. This will hurt RRSP holders, but non-registered investors will receive dividend tax credits, so the after-tax effect is nil. I think it depends on the trusts. Trusts with a high proportion of return of capital in their distribution are less affected by the tax ruling. Some trusts may postpone their distribution hikes in order to build a buffer in their cash-flow. This extra will help offset future tax obligations.

Others will probably cut their distribution. This will hurt RRSP holders, but non-registered investors will receive dividend tax credits, so the after-tax effect is nil.

]]> By: Thicken My Wallet » Blog Archive » Income Trusts: Taxes http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-477 Thicken My Wallet » Blog Archive » Income Trusts: Taxes Wed, 25 Jul 2007 14:55:04 +0000 http://financialjungle.com/2007/07/19/investing/how-to-pick-oil-and-gas-trusts/#comment-477 [...] Dollar Journey have each written on different types of income trusts (REITS, Business Trusts, Oil and Gas and Pipelines) while I have blogged on general financial ratios one should look at for all trusts. [...] […] Dollar Journey have each written on different types of income trusts (REITS, Business Trusts, Oil and Gas and Pipelines) while I have blogged on general financial ratios one should look at for all trusts. […]

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