# First Capital Realty FCR.TO



## gardner (Feb 13, 2014)

Couldn't find an existing thread on FCR.

They've gone ahead and converted to a REIT.
https://fcr.ca/wp-content/uploads/2...-announcing-completion-of-the-Arrangement.pdf

I am kind of bummed that it is a capital event and comes in a tax year (2019) where I have a big block of taxable gains. I did some tax loss selling at the end of the year that will ease things, but I would have been happier to realise the gain in 2020.

Anyone have opinions about the potential long term effects of the switch? Will it improve things for them?


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## doctrine (Sep 30, 2011)

It allows them to pass through taxes on distributions, rather than paying at the corporate level, which can allow them to increase distributions. But you don't get the dividend tax credit any longer, which offsets the potential for increases. But inevitably, the market is really only looking for REITs, not corporate structures, and a lot of Canadians hold them in registered accounts where they don't pay distribution taxes on Canadian equity. It probably makes sense for the company, but it has been nice to hold real estate companies in non-registered accounts too.


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