Taxation of trust units

Trust units offer certain tax advantages. Accordingly, for real estate trusts, the amortization of rental income and deductible interest lets you reduce the taxable portion of your profits.

Also, for royalty trusts, the taxable income on distributions is lower because the resource (e.g. oil) is depleted.

Some income trusts generate a large part of their revenues in the form of capital gains that are taxed at only 50%.