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posted Oct 30, 2019 10:31:36 AM

What is the correct way to classify a one-time cash distribution from a stock that will not have an accompanying T-slip?

The one-time cash distribution was related to a reorganization of the company. I contacted my brokerage and they said no T-slip would be supplied for this transaction, and I just want to make sure I am accounting for this correctly.

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1 Replies
Level 2
Oct 30, 2019 10:31:38 AM

If the one-time cash distribution did not represent a taxable distribution by the company (so that no T-slip would otherwise be issued), then the cash distribution would normally represent a "return of capital" and would lead to a reduction of the original cost base of the shares.