If it is indeed treated as Dividend Income when the shares are distributed, you would declare that under your dividends for 2011(assuming of course we get the distribution this year). The total amount of the income (Shares X market price per share) would also be your base cost for the shares going forward.

If you sold for a higher price then the distribution price you would have a capital gain in the year you sold them.

That's the way I understand it at this point.

And thanks to the posters on this board for their input and information.

Wishing