The dissolution of the Sunstone Opportunity Fund (2007) (“Sunstone”) on December 31, 2021, has triggered some income tax implications. The following information is provided to our investors as income tax information and does not, in any form, constitute income tax advice. All investors should seek income tax advice from a professional tax accountant to ensure they have correctly prepared their income tax return.

To properly calculate your income tax losses, Sunstone has provided the tax factors published over the life of the investment from 2007 to 2021. These tax factors can be found below.

The information provided does not factor in the costs to acquire the investment, assumes that the investors held the units since issuance in 2007, and acquired the investment for $1,250 per unit - $250 per unit for the Sunstone Opportunity Fund (2007) Realty Trust (“Realty Trust”) and $1,000 per unit for the Sunstone Opportunity (2007) Mortgage Fund (“Mortgage Fund”).

Sunstone Opportunity Fund (2007) Realty Trust – Capital loss

For the tax year 2021, due to the dissolution, a capital loss on investment has been realized for the Realty Trust units of $239.9178 per unit ($250/unit original subscription less Return of Capital (“ROC”) from 2007-2021 of $10.0822/unit). This loss only pertains to the Realty Trust with the original contribution of $250 per unit and assumes investors held the investment since inception.

If investors acquired these units after issuance at a different amount than $250 per unit, their adjusted cost base may not be the same.

Investors can recalculate the ROC by adding up all the amounts in Box 42 on the T3 slips or the tax factors provided by Sunstone from 2007 to 2021.

Sunstone Opportunity 2007 Mortgage Fund

For the tax year 2021, there are two types of deductions associated with the Mortgage Fund that investors can claim on their income tax return. One deduction is the capital loss on investment and the other deduction is the uncollectible receivable on investment. Uncollectible receivable loss on investment pertains to the loss which resulted from the Mortgage Fund’s “preferred rate distribution” accrued to investors. These annual distributions were included in each investors income over the years but were not all paid in cash. This unpaid portion can be used a deduction for the 2021 tax year.

Capital Loss Calculation:

The capital loss on investment for the Mortgage Fund is $125.65643 per unit ($1,000/unit original subscription less ROC from 2007-2021 of $874.34357). This loss only pertains to the 2007 Mortgage Fund with the original contribution of $1,000 per unit and assumes investors held the investment since inception.

If investors acquired these units after issuance at a different amount than $1,000 per unit, their adjusted cost base may not be the same.

Investors can recalculate the ROC by adding up all the amounts in Box 42 on The T3 slips or the tax factors provided by Sunstone from 2007 to 2021.

Income Loss Calculation (Other Deduction):

The amount of uncollected receivable on investment for the Mortgage Fund is $180.63053 per unit and assumes that the Mortgage Fund unit was acquired since inception in 2007. This amount would be claimed as “other deductions” and would be entered on line item 23200 of your income tax return. If investors acquired these after issuance in 2007, their uncollectible distributions may not be the same.

Investors can recalculate the uncollected receivable per unit adding up all the amounts allocated to ‘Total Non Cash Distributions Per Unit’ on the tax factors document provided for each year.

For example: Using the 2015 Tax Factors, the ‘Total Non Cash Distributions Per Unit’ for that year would be $10.55654 per unit ($2.95891 + $ $2.49315 + $2.52055 + $2.58393). You would need to total this amount for every year you held the investment.

This information is general in nature and provided as reference only. Sunstone can not guarantee that your tax slips produced by the brokerage’s back office are presented as the same format as the CDS file presented on this page.

If you have any questions regarding tax information, please contact:

Sunstone Opportunity Fund (2007)
Darlene Paziuk
Direct: 604-449-6402
Toll Free: 1-888-681-5959 ext. 1555
Email: dpaziuk@sunstoneadvisors.com

2021 CANADIAN TAXES

The 2021 T-3 tax slips for Sunstone Opportunity (2007) Mortgage Fund will be issued by the participating brokerage firms. The deadline for mailing these slips is March 31, 2022.

If units are held in a registered account, no tax slips will be issued.

To obtain copies of your tax slips, please contact your financial advisor.