Reminder to submit your details to Horizon's ETFs for Section 85 election
If you owned any of the Horizon's synthetic swap ETFs they reorganized under a mutual fund corporation at the beginning of December. This is in response to changes in the taxation of these vehicles. This will be treated as a taxable event if held in a taxable account however you can elect to file a joint section 85 election with Horizon's to minimize taxation and defer until sold.
Here's the link: https://www.taxelection.ca/Horizons/
I believe it needs to be submitted by month end otherwise they may not process your paperwork.
Posted Dec 24, 2019, 1:25 AM UTC
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Ugh...thanks for this. I was aware of the Horizons tax issue but was not aware of this entire "election" thing to defer the taxes.
We currently own HXS and HXT. I'm really confused...in the questionnaire Horizons wants us to fill out, it says: "If you held your Merging ETFs units in an account with an investment dealer or broker, they may be able to confirm the number of units you transferred. Alternatively, this information should be on your brokerage statement for the period that includes the Effective Date of the Mergers." We own HXS and HXT through RBC Direct Investing...none of our recent statements mention anything about those two ETFs, and nothing appears to have been "transferred". Does this mean we need to contact RBC DI and ask them about it? Or should we just list the number of shares we own in HXS and HXT?
It will likely be all the shares. If you look at account activity you may see the exchange transaction around December 2nd. I got around to doing this today and it took just 5 minutes per account to verify ACB as some were 7 year old holdings. Accountants said it's straight forward on their end when filling the returns. Had to do this for personal and corporate accounts.
Ah, I see the Dec 2 transactions now that I look at the Activity History (and it was all the shares). Great...thanks for posting that, I don't know how we missed seeing the notice about it before!