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Black Diamond Income Fund Releases 2008 Canadian Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2009) - 

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Black Diamond Income Fund (TSX:BDI.UN) ("Black Diamond" or the "Fund") has announced information necessary for 2008 Canadian tax reporting. The information provided below is solely to assist Canadian individual unitholders with tax reporting information in respect of distributions declared during the calendar year 2008. This information is not intended to constitute legal or tax advice to any holder or potential holder of Black Diamond units ("Units"). Canadian unitholders should consult with a taxation or investment professional for additional tax advice. The following summary applies to unitholders who are residents of Canada under the Income Tax Act (Canada) and who hold their units as capital property.

Units held within an RRSP, RRIF, RESP or DPSP 

No amounts are to be reported on the unitholders' 2008 Income Tax Return where Units are held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP) or a Deferred Profit Sharing Plan (DPSP).

Units held outside an RRSP, RRIF, RESP or DPSP

Unitholders who hold their Units outside of an RRSP, RRIF, RESP or DPSP and were entitled to receive distributions on a distribution record date within the calendar year 2008 will receive a T3 Statement of Trust Income Allocations and Designations Slip ("T3") directly from Olympia Trust Company or from the broker/intermediary who the unitholder holds their Units through. Distributions declared in 2008 will be a 49.94% return of capital and reported in box 42 of the T3. The deadline for mailing the 2008 T3's to unitholders, as required by the Canada Revenue Agency is March 31, 2009.

Schedule of Tax Treatment of 2008 Distributions

The following schedule details the cash distributions declared in 2008 and the tax treatment of each distribution per Unit for income tax purposes:

/T/

                                     Taxable       Return of
Record                                Amount         Capital          Total
 Date            Payment Date   (T3 - Box 26)   (T3 - Box 42)  Distribution
----------------------------------------------------------------------------

January     
 31, 2008   February 15, 2008 $       0.0451  $       0.0449  $      0.0900
February
 29, 2008      March 17, 2008 $       0.0451  $       0.0449  $      0.0900
March 31,
 2008          April 15, 2008 $       0.0451  $       0.0449  $      0.0900
April 30,
 2008            May 15, 2008 $       0.0451  $       0.0449  $      0.0900
May 30,
 2008           June 16, 2008 $       0.0451  $       0.0449  $      0.0900
June 30,
 2008           July 15, 2008 $       0.0451  $       0.0449  $      0.0900
July 31,
 2008         August 15, 2008 $       0.0451  $       0.0449  $      0.0900
August 29,
 2008      September 15, 2008 $       0.0451  $       0.0449  $      0.0900
September
 30, 2008    October 15, 2008 $       0.0451  $       0.0449  $      0.0900
October     
 31, 2008   November 17, 2008 $       0.0451  $       0.0449  $      0.0900
November  
 28, 2008   December 15, 2008 $       0.0451  $       0.0449  $      0.0900
December 
 31, 2008    January 15, 2009 $       0.0451  $       0.0449  $      0.0900
----------------------------------------------------------------------------
Total                         $       0.5412  $       0.5388  $      1.0800
----------------------------------------------------------------------------
----------------------------------------------------------------------------

/T/

Adjusted cost base of Units for capital gain purposes

Canadian individual Unitholders are required to reduce the adjusted cost base ("ACB") of their Trust units by the amount reported in Box 42 "Amount Resulting in Cost Base Adjustment" of the 2008 T3, which is equal to the cumulative distributions declared during calendar 2008 that the Canadian individual Unitholder was entitled to, less the amount reported as "Other Income" in Box 26 of the 2008 T3. The ACB is then used to determine and report in the Canadian individual Unitholder's T1, the capital gain/loss, if any, in the taxation year when the Units are disposed or deemed disposed of. If the ACB is reduced to zero, any further reduction to the ACB should be reported by the Canadian individual Unitholder as a capital gain on the Canadian individual Unitholder's T1 in the taxation year that it occurs. 

The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular, and Black Diamond Energy Services. 

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration. 

Forward-Looking Statements 

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements. For more information please contact Black Diamond Income Fund, by its Manager, Black Diamond Group Inc.

FOR FURTHER INFORMATION PLEASE CONTACT: