Share Cost Basis

Investors should be aware that distributions and dividends prior to 2013 contained a return of capital component which will affect the share cost basis calculation should an investor decide to sell shares in the future. After 2012, distributions are considered eligible taxable dividends without a return of capital component.

Return of capital acts as a tax deferral for investors but does affect the share cost basis. For example, when you purchased a unit or share, say for $10.00, this is your capital or cost basis. Each unit/share will receive a monthly distribution which, prior to 2013, contained return of capital. The return of capital is a tax-deferred mechanism which decreases your original cost basis as opposed to being immediately taxable at marginal or dividend rates.

If, in future years, you decide to sell your unit/share and the price is higher than your adjusted cost basis, the difference between the selling price and the adjusted cost basis is treated as a capital gain.

Depending on the month and year you purchased your shares, please reference the chart below to calculate your adjusted share cost basis.