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Stock impact report

Digging deeper into the Brookfield Infrastructure unit split [Toronto Globe and Mail (Ontario, Canada)]

Brookfield Infrastructure Partners LP Class A Subordinate Voting Shares (BIPC) 
Digging deeper into the Brookfield Infrastructure unit split I read your column last week about Brookfield Infrastructure Partners LP’s (BIP.UN) unit split to create Brookfield Infrastructure Corp. (BIPC). Can you explain the tax consequences? First, a quick recap: Effective March 31, BIP.UN unitholders received one share of BIPC for every nine units of BIP.UN held. BIP.UN investors – who will continue to own the same number of BIP.UN units as before, in addition to the new BIPC shares – will also receive a small amount of cash in lieu of any fractional BIPC shares to which they are entitled. The unit split, or special distribution, is not taxable. However, for BIP.UN investors who hold their units in a non-registered account, the adjusted cost base (ACB) of their BIP.UN units should be reduced by an amount equivalent to the fair market value of the new BIPC shares and any cash received. The ACB must be reduced in order to properly calculate the capital gain for tax purposes Show less Read more
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