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How are my distributions taxed?

An explanation of the various distributions and their tax significance

Last updated on February 27, 2022

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There are multiple types of distributions you can receive from addy, each with it’s own tax implications
 

All distributions will be listed in your addy account under your “Wallet” tab. Currently, all distributions are listed the same way. Soon, the specific type of distribution will be made available. If you receive more than a penny in taxable distributions from any addy, we will prepare and upload the appropriate tax documents at tax time.

Capital Gain or Loss

Generally realized from the sale of the property, this is reported on the T5008 form.

Rental Income

This is generally net income earned from property rental revenue, and is reported on a T5 tax form.

Return of Capital

A non-taxable event wherein your capital (initial investment amount) is returned

Net Business Income

Generally realized form the development and sale of real estate property, that is not classified as a Capital Gain

Partnership Income

If an addy is structured as a Partnership, you will have to file your distribution income as a T5013. So far, this structure has only been used for the addy at 45604 Airport Road, Chilliwack, BC. Click this What is a T5013? to learn more about this tax form.

 
 
 
 
 
 
 
 
 
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