Business
Peyto Energy Trust announces 2007 United States tax information
SYMBOL: PEY.UN - TSX CALGARY, Feb. 27 /CNW/ - The following information is being provided to assi...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, Feb. 27 /CNW/ - The following information is being provided to\nassist U.S. individual unitholders of Peyto Energy Trust ("Peyto") in\nreporting distributions received from Peyto during 2007 on their Internal\nRevenue Service ("IRS") Form 1040 - U.S. Individual Income Tax Return ("Form\n1040") for 2007.\n\n\nPeyto has not obtained a legal or tax opinion, nor has it requested a\nruling from the IRS on these matters. The following summary is of a general\nnature only and is not intended to be legal or tax advice to any particular\nholder or potential holder of Peyto trust units. Holders or potential holders\nof Peyto trust units should consult their own legal and tax advisors as to\ntheir particular tax consequences of holding Peyto trust units.\n\n\nTrust Units held outside of a Qualified Retirement Plan\n\n\nFor distributions relating to 2007, 100 percent of the distributions\nshould be considered taxable as dividends to the unitholder for U.S. federal\nincome tax purposes. After consulting with its tax advisors, Peyto believes\nthat its distributions should be considered "Qualified Dividends" under the\nJobs and Growth Tax Relief Reconciliation Act of 2003 and should be eligible\nfor the reduced U.S. dividend tax rate for U.S. individual unitholders who\nmeet certain holding period requirements. However, the individual taxpayer's\nsituation must be considered before making this determination. Qualified\nDividends should be reported on Line 9(b) of the IRS Form 1040, unless the\nfacts of the U.S. individual unitholder determine otherwise. Page 19 of the\nIRS 2007 Form 1040 instruction booklet provides examples of individual\nsituations where the distributions would not be "Qualified Dividends". Where\nthe distributions are not considered "Qualified Dividends" due to an\nindividual's situation, the amount should be reported on Schedule B, Part II -\nOrdinary Dividends and Line 9(a) of your IRS Form 1040.\n\n\nU.S. unitholders are encouraged to utilize the Qualified Dividends and\nCapital Gain Tax Worksheet provided by the IRS to determine the amount of tax\napplicable.\n\n\nCanadian withholding taxes that have been withheld from the taxable\nportion of your distributions (as computed under Canadian tax principles)\nshould be rep...