When the holder of income trust units receives a distribution that contains a return of capital, the amount of the return of capital must be added to the adjusted cost base of the units.

Name: When the holder of income trust units receives a distribution that contains a return of capital, the amount of the return of capital must be added to the adjusted cost base of the units.
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Question

Quizplus · Accepted Answer

A return of capital reduces the adjusted cost base of the units, not increases it.

When the Holder of Income Trust Units Receives a Distribution