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Originally Posted by bizaro86
What specific security are you asking about? It really depends. As an example, REIT distributions are often a mix of return of capital (which isn't taxed but does reduce your cost base when you sell) and regular income.
If you're in a lower tax bracket dividends are really advantageous. You pay tax in your bracket, but the tax credit essentially assumes you are in the highest bracket. So the effective tax rate on eligible dividends is very low for people in lower brackets.
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Thanks. I don’t have any REITs at the moment but moreso now I want to think about the tax implications for whatever I invest in. I used to do REITs like pizza pizza and keg but have stayed away in favour of large cap stocks. I’m probably in the bracket just below the one mentioned by Slava so just seeing what’s advantageous if over the next year growth is flat and I move more into dividend based stocks.