The Globe and Mail reports in its Saturday edition that in February, a joint venture between the Government of Singapore Investment Corp. and Dream Industrial REIT agreed to purchase Summit Industrial Income REIT for $23.50 per unit, or $5.9-billion. In a Globe special, John Heinzl explains the tax implications of that move. He says that the purchase price of $23.50 has two components: redemption proceeds of $7.15, and a special distribution of $16.35. The special distribution is estimated to consist of capital gains of $14.30 and ordinary income of $2.05. The exact amount of capital gains (half of which are taxable) and ordinary income (which is fully taxed at the investor's marginal rate) will be included on a T3 tax slip next year, so reporting them should be straightforward. He adds that investors will also have to calculate and report their own capital gain or loss from tendering their units. To do this, they would subtract the adjusted cost base of your units from the $7.15 redemption proceeds. A negative number would indicate a capital loss (which will help to offset the capital gains in the special distribution). A positive number would indicate a capital gain. Mr. Heinzl advises getting tax advice.