The adjusted cost base is used to calculate gains or losses, for tax purposes, on the disposition of trust units. The return of capital portion of distributions received reduces the adjusted cost base of each trust unit. If the adjusted cost base is negative, the amount is deemed to be a capital gain by the Canada Revenue Agency. Payment of capital gain tax on the negative cost base resets the trust unit cost base to zero.

For your convenience, we’ve provided below the formula for calculating the adjusted cost base of your trust units. If this is unclear or you require assistance, please call us at 403.266.8670, or send an email to Nicholas Lau at: nicholas.lau@trueenergy.ab.ca