What happens if my REIT’s adjusted cost base drops to zero?
I purchased two real estate investment trusts – Chartwell ( CSH.UN ) and PROREIT ( PRV.UN ) – more than a decade ago, and they pay out their distributions mostly as return of capital.
Each now has a book cost under $1.
By next year, their book cost could each be less than $0.
Can they have a negative book cost or does their book cost just stay at zero? How do I calculate my capital gains if I sell?
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