Quadriga first interim dividend

[Stargazer]

New client came in to do 2024 return and adjustment to 2023. He received a First Interim Dividend payment from Quadriga who is in bankruptcy. I want to make sure I’m interpreting what I do with this correctly.

In reading the letter he received from the trustee (no T5), I think this just needs to be reported as “other eligible dividends” without calculating a loss at this time. It’s just income in 2023.

His loss will be dealt with when they finally resolve the bankruptcy and he gets his final payout, which I believe will be 13% of what he invested.

[neal]

I suggest that’s a dividend in bankruptcy terms, not tax definition. Partial proceeds of disposition with remainder uncertain. Unsure but I’d be inclined to report proceeds of disposition against ACB up to equal these proceeds. Any further proceeds report when received offset by any remaining ACB.

[Stargazer]

If it helps, this is the relevant part of the letter with no client identifying information.

[obhorst]

I think you are still confirming that @neal is correct. It is a dividend in bankruptcy terms.

[Stargazer]

Perfect, thank you both!