Comments on: Flow Through Shares Strategies Part 1 http://wheredoesallmymoneygo.com/flow-through-shares-strategies-part-1/ A personal finance blog written by Preet Banerjee Thu, 09 Sep 2010 05:57:13 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Preet http://wheredoesallmymoneygo.com/flow-through-shares-strategies-part-1/#comment-37 Preet Wed, 02 Apr 2008 01:12:21 +0000 http://symbiantcapital.com/2007/09/13/flow-through-shares-strategies-part-1/#comment-37 <p>Hi Albert - there are two ways of structuring the ladder. </p><p>Also it should be pointed out that the ACB of the flow through is 0 - so whatever amount you sell is a capital gain (if you sell it).</p><p>The flow through will normally roll-over into a mutual fund with no deemed disposition (A section 85 rollover I believe?), if the company has a wide shelf of funds you could keep it in there without triggering the gain. In this case you could switch funds (if in a class structure) around to make sure you stick to your long term asset allocation.</p><p>The other option is to sell those rolled-over funds to purchase the new flow through - in which case you will have to pay tax of roughly 1/4 the value of the rolled-over amount. You would have to top that up yourself to keep the ladder going.</p><p>I'll have to amend this post in the future to accurately reflect the options - so thanks for the question!</p> Hi Albert – there are two ways of structuring the ladder.

Also it should be pointed out that the ACB of the flow through is 0 – so whatever amount you sell is a capital gain (if you sell it).

The flow through will normally roll-over into a mutual fund with no deemed disposition (A section 85 rollover I believe?), if the company has a wide shelf of funds you could keep it in there without triggering the gain. In this case you could switch funds (if in a class structure) around to make sure you stick to your long term asset allocation.

The other option is to sell those rolled-over funds to purchase the new flow through – in which case you will have to pay tax of roughly 1/4 the value of the rolled-over amount. You would have to top that up yourself to keep the ladder going.

I’ll have to amend this post in the future to accurately reflect the options – so thanks for the question!

]]> By: Albert Leung http://wheredoesallmymoneygo.com/flow-through-shares-strategies-part-1/#comment-36 Albert Leung Wed, 02 Apr 2008 00:21:53 +0000 http://symbiantcapital.com/2007/09/13/flow-through-shares-strategies-part-1/#comment-36 <p>I like what is in the article but don't understand about the rollover to another LP and get deductions. Don't you have to report capital gain when dispose of the 1st LP?</p> I like what is in the article but don’t understand about the rollover to another LP and get deductions. Don’t you have to report capital gain when dispose of the 1st LP?

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