Avenir Diversified Income Trust

Avenir Diversified Income Trust

March 22, 2005 13:20 ET

Avenir Diversified Income Trust 2004 Canadian Income Tax Information


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AVENIR DIVERSIFIED INCOME TRUST

TSX SYMBOL: AVF.UN

MARCH 22, 2005 - 13:20 ET

Avenir Diversified Income Trust 2004 Canadian Income
Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 22, 2005) - Avenir Diversified
Income Trust (TSX:AVF.UN) ("Avenir Trust") is pleased to announce that
of the cash distributions paid to Unitholders in the 2004 taxation year,
75% was taxable and 25% was tax deferred ("return of capital").

The following table sets out the cash distributions received in 2004 by
Unitholders and identifies what portion of each distribution is taxable
as income and what portion is tax deferred as return of capital. The
calculation has been completed on a cash basis, so the distribution
declared by the Avenir Trust in December 2004 (payable in January 2005)
is NOT included in the calculation of Unitholder's 2004 taxable income,
but will be part of the 2005 calculation. This is a change as the
December 2003 distribution was included in the 2003 calculation and
therefore will not be included for 2004.



------------------------------------------------------------------------
Tax
Deferred
Taxable Amount
Income Per Unit Total
Per Unit (Return Distribution
(Other of Paid Per
Record Date Payment Date Income) Capital) Unit
------------------------------------------------------------------------
January 31, February 13, 0.00437 0.00146 0.00583
2004 2004
February 27, March 15, 0.00437 0.00146 0.00583
2004 2004
Pre- March 31, April 15, 0.00437 0.00146 0.00583
Consolidation 2004 2004
April 30, May 14, 0.00437 0.00146 0.00583
2004 2004
May 31, June 15, 0.00437 0.00146 0.00583
2004 2004
------------------------------------------------------------------------
June 25, July 15, 0.05903 0.01967 0.07870
2004 2004
June 30, July 15, 0.00660 0.00220 0.00880
2004 2004
July 30, August 16, 0.06563 0.02187 0.08750
2004 2004
Post- August 31, September 15, 0.07219 0.02406 0.09625
Consolidation 2004 2004
September 30, October 15, 0.07219 0.02406 0.09625
2004 2004
October 29, November 15, 0.07219 0.02406 0.09625
2004 2004
November 30, December 15, 0.07219 0.02406 0.09625
2004 2004
------------------------------------------------------------------------


The following information is provided to assist Canadian Unitholders of
the Avenir Trust in the preparation of their 2004 Income Tax Return and
is not to be considered income tax advice to any particular individual
but rather, general information.

Registered Unitholders who held trust units outside Registered
Retirement Savings Plans (RRSP), Registered Retirement Income Funds
(RRIF) or Deferred Profit Sharing Plans (DPSP), will receive a T3
Supplementary Slip for 2004 ("T3") from their investment advisor or
other intermediary and must report the taxable portion of such
distributions as "other income" on their T1 Income Tax Return.

The 'Tax Deferred Amount' affects the adjusted cost base ("ACB") of the
unit. The ACB is used in calculating capital gains or losses on the
disposition of trust units. The ACB of each trust unit is reduced by the
amount of distributions considered return of capital and is not reported
on a T3. If a taxpayer's ACB of their trust units drops below zero, the
negative amount is considered a capital gain of the taxpayer during that
taxation year. Capital gains are reported on Schedule 3 of the T1 Income
Tax Return.

Unitholders who hold their Trust Units in a RRSP, RRIF or DPSP do not
need to report any income related to distributions on their 2004 income
tax return.

Avenir Trust is an income trust designed to provide sustainable
distributions and growth from a diverse portfolio of operating assets in
the sectors of energy, financial services and real estate. The resulting
cash flow from these assets is distributed to unit holders on a monthly
basis. The trust units of Avenir Trust trade on the TSX under the symbol
AVF.UN.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or sold in the
United States except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and applicable
state securities laws.

Forward Looking Statements

Certain information regarding Avenir Diversified Income Trust set forth
in this document, including management's assessment of the Trust's
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 the Trust's and management's
control, including but not limited to, the impact of general economic
conditions, industry conditions, fluctuation of commodity prices,
fluctuation of foreign exchange rates, imperfection of reserve
estimates, 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. The Trust's actual results, performance or achievement could
differ materially from those expressed in or implied by, these forward
looking statements and accordingly, no assurance can be given that any
of the events anticipated to occur or transpire from the forward looking
statements will provide what, if any benefits to the Trust.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Avenir Diversified Income Trust
    William M. Gallacher
    President and CEO
    (403) 237-9949
    or
    Avenir Diversified Income Trust
    Gary H. Dundas
    Vice-President, Finance CFO
    (403) 237-9949
    (403) 237-0903 (FAX)
    or
    Avenir Diversified Income Trust
    Suite 300, 808 - 1st Street S.W.
    Calgary, Alberta T2P 1M9
    The TSX Exchange has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.