On January 1, 2020, Jeanine Dorset acquires 1,700 units of Blackwell Income Trust at $37 per unit, a total cost of $62,900. During 2020, the trust distributes $2.75 per unit, $0.85 of which is a return of capital and $1.90 of which is a property income distribution. Jeanine has asked the trust to reinvest all distributions. The $2.75 per unit distribution was reinvested at a cost of $32 per additional unit. What are the tax consequences to Jeanine of the 2020 distribution and its reinvestment? What will be her adjusted cost base per unit after the reinvestment?

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The Answer of On January 1, 2020, Jeanine Dorset acquires 1,700 units of Blackwell Income Trust at $37 per unit, a total cost of $62,900. During 2020, the trust distributes $2.75 per unit, $0.85 of which is a return of capital and $1.90 of which is a property income distribution. Jeanine has asked the trust to reinvest all distributions. The $2.75 per unit distribution was reinvested at a cost of $32 per additional unit. What are the tax consequences to Jeanine of the 2020 distribution and its reinvestment? What will be her adjusted cost base per unit after the reinvestment?

On January 1, 2020, Jeanine Dorset Acquires 1,700 Units of Blackwell