Tax Loss LettersWritten by Super User
Letters will be sent out showing the share holdings of each investor, enclosing a small check for $.001 cents per share for the old Stanfield holdings to help crystallize the tax loss, and providing a record of the conversion for investors to use in their upcoming 2014 calendar year tax filings due April 30th. Investors can use the information in the mailings to calculate their full loss and can send copies of the Blakes mailing and documentation of how much the investor paid for the original Stanfield shares to CRA in order to prove the amount of their losses.
Generally speaking, your full loss will be equal to the original value paid for the Stanfield shares minus the sum of the check you receive for those shares and the value of the newly issued Purcell shares you receive from Blakes and Computershare at the Plan of Arrangement distribution price of $10 per share.
Note that these losses can be used to offset either capital gains (using 100% of the value of the loss) or any other type of income using the Allowable Business Investment Loss (using 50% of the value of the loss). If necessary the losses can be used to offset capital gains or other income, respectively, going back three years and forward seven years.