European Residential REIT (“ERES”) pays a monthly distribution to eligible Unitholders and holders of class B limited partnership units (“Class B LP Units”) of ECRE Limited Partnership, of which only a portion is taxable. The non-taxable portion of any net realized capital gains and any other amount in excess of the net income payable to Unitholders and holders of Class B LP Units will not generally be included in the income of Unitholders or holders of Class B LP Units for the year.
Income Tax Considerations – Distributions
Unitholders and holders of Class B LP Units generally are required to include taxable income received in their income tax return. The taxable portion of the distribution has to be included even if the distribution is reinvested under the Distribution Reinvestment Plan.
Canadian Unitholders will receive a Statement of Trust Income Allocations and Designations (“T3”), and Canadian holders of Class B LP Units will receive a Statement of Partnership Income (“T5013”). You should receive a statement from either your financial institution or advisor if you hold your Units or Class B LP Units in an account, or directly from ERES's transfer agent, TSX Trust Company, if you are a registered Unitholder or a registered holder of Class B LP Units.
Non-resident Unitholders should receive a Statement of Amounts Paid or Credited to Non-Residents of Canada (“NR4”) with the taxable income reported in box 16 and the non-resident tax withheld shown in box 17.