Taxation Of Badger Income Fund Distributions For Canadian Residents
The information provided below is solely to assist Canadian individual unitholders with tax reporting information in respect of distributions paid and declared during the calendar year 2009. Canadian unitholders should consult with a taxation or investment professional for individual tax advice.
Distributions Paid and Declared During 2009
Canadian unitholders will receive a T3 slip for Badger Income Fund.
Record Date |
|
Payment Date |
|
Capital Gains
(T3-Box 21) |
|
Taxable
Amount
(T3 - Box 26) |
|
Tax Deferred
Amount
(T3 - Box 42) |
|
Total Distribution |
 |
| January 30/09 |
|
February 16/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| February 27/09 |
|
March 16/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| March 31/09 |
|
April 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| April 30/09 |
|
May 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| May 29/09 |
|
June 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| June 30/09 |
|
July 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| July 31/09 |
|
August 17/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| August 31/09 |
|
September 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| September 30/09 |
|
October 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| October 30/09 |
|
November 16/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| November 30/09 |
|
December 15/09 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
| December 31/09 |
|
January 15/10 |
|
0.00045 |
|
0.08428 |
|
0.02027 |
|
0.1050 |
|
Taxation Of Badger Income Fund Distributions For United States Residents
The following information is being provided to assist individual U.S. holders of fund units of Badger Income Fund who hold their units through a broker or other intermediary in reporting dividends received from Badger Income Fund on their IRS Form 1040 – U.S. Individual Income Tax Return for the calendar year 2009. The information is intended as a general guideline and should not be considered legal advice to any particular existing or potential holder of fund units. The information is not intended to cover all possible U.S. income tax considerations. Holders or potential holders of fund units of Badger Income Fund should consult their own legal and tax advisors as to specific U.S. tax consequences of holding the fund units of Badger Income Fund.
We believe for U.S. federal income tax purposes, that the units of Badger Income Fund are more likely than not treated as equity in a corporation, rather than as debt, and that distributions paid to its individual U.S. unitholders will more likely than not be taxable dividends provided they do not represent a return of capital. The portion of the trust distributions that is considered a dividend for U.S. income tax purposes is determined based upon the greater of Badger Income Fund’s current or accumulated earnings and profits (“E&P”) as determined in accordance with U.S. income tax principals. With respect to cash distributions declared in 2009 to U.S. individual unitholders, 100 percent should be reported as taxable dividends.
As the Badger Income Fund is a qualified foreign corporation the portion of the distributions made during 2009 that are considered to be dividends should be ‘qualify dividends’ and therefore be eligible for the reduced rate of tax applicable to net capital gains. Badger Income Fund is not required to issue Form 1099 DIV’s; however, U.S. unitholders may receive a Form 1099 DIV from a broker or intermediary that may not reflect the dividend as a ‘qualifying dividend’. As a result of this, U.S. unitholders should consult their brokers and tax advisors to ensure that this information is accurately reflected on their tax returns. Brokers and/or intermediaries may or may not be required to issue amended Form 1099 DIVs. Readers should consult their own legal or tax advisors as to their particular tax consequence of holding Badger Income Fund units. |
