Friday, December 26, 2014

Recent Sale

     I recently wrote about  a purchase of Boston Pizza Royalties Income Fund (BPF.UN) in my margin account.  I also own 234 units in my Tax Free Savings account that I have owned since March 2010.

       This fund pays a distribution monthly at the end of the month.  In Canada, the rules for income trust were changed in 2011, after the announcement on Halloween 2006 by the finance minister at the time, Jim Flaherty. Companies that would remain as an income trust would have to pay a SIFT tax.  The SIFT Tax stands for the Specified Investment Flow Through tax. You can read more about the SIFT Tax here.  With income trust having to pay this tax, it meant it has less profits to pay out to unit holders.  This was the reason why the distribution was reduced a few years ago.  A lot of companies switched back to a corporation setup prior to this tax coming into effect.

      My limit order of $21.55 was recently filled on Dec 22,2014. I also will collect the distribution payment at the end of the month in the amount $20.40 for the 200 units that I held .

Initial Purchase with commissions: 200 *21.23  + $4.95 = $4250.95
Distribution received     = $20.40
Proceeds of Sale = $21.55*200 -$4.95=$4305.05

Profit =$4305.05-4250.95+20.40
           =  $74.50

Total Return on Investment = $74.50/$4250.95
                                             = 1.753 %

Click to Enlarge

Disclosure: Long BPF.UN inside TFSA still


     I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.  Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk

No comments:

Post a Comment