Business
Badger Income Fund releases United States tax information
TSX-BAD.UN CALGARY, Feb. 28 /CNW/ - The following information is being provided to assist individ...
About this update from Badger Infrastructure Solutions Ltd
[{"type":"text","content":"\n\n\n\nTSX-BAD.UN\n\n\nCALGARY, Feb. 28 /CNW/ - The following information is being provided to\nassist individual U.S. holders of fund units of Badger Income Fund who hold\ntheir units through a broker or other intermediary in reporting dividends\nreceived from Badger Income Fund on their IRS Form 1040 - U.S. Individual\nIncome Tax Return for the calendar year 2007. The information is intended as a\ngeneral guideline and should not be considered legal advice to any particular\nexisting or potential holder of fund units. The information is not intended to\ncover all possible U.S. income tax considerations. Holders or potential\nholders of fund units of Badger Income Fund should consult their own legal and\ntax advisors as to specific U.S. tax consequences of holding the fund units of\nBadger Income Fund.\n\n\nWe believe for U.S. federal income tax purposes, that the units of Badger\nIncome Fund are more likely than not treated as equity in a corporation,\nrather than as debt, and that distributions paid to its individual U.S.\nunitholders will more likely than not be taxable dividends provided they do\nnot represent a return of capital. The portion of the trust distributions that\nis considered a dividend for U.S. income tax purposes is determined based upon\nthe greater of Badger Income Fund's current or accumulated earnings and\nprofits ("E&P") as determined in accordance with U.S. income tax principals.\nWith respect to cash distributions declared in 2007 to U.S. individual\nunitholders, 100 percent should be reported as taxable dividends.\n\n\nAs the Badger Income Fund is a qualified foreign corporation the portion\nof the distributions made during 2007 that are considered to be dividends\nshould be `qualify dividends' and therefore be eligible for the reduced rate\nof tax applicable to net capital gains. Badger Income Fund is not required to\nissue Form 1099 DIV's; however, U.S. unitholders may receive a Form 1099 DIV\nfrom a broker or intermediary that may not reflect the dividend as a\n'qualifying dividend'. As a result of this, U.S. unitholders should consult\ntheir brokers and tax advisors to ensure that this information is accurately\nreflected on their tax returns. Brokers and/or intermediaries may or may not\nbe required to issue amended Form 1099 DIVs. Readers should consult their own\nlegal or tax adv...