Comments on: Tax Implications of Foreign Dividend Investing http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Canadian Capitalist http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-1404929 Canadian Capitalist Mon, 16 Jan 2012 06:02:35 +0000 http://www.canadiancapitalist.com/?p=948#comment-1404929 @David: The T-slips issued to you should have the distributions classified correctly. Capital gains or losses work exactly as it does for other securities. Any Return of Capital is used to reduce the ACB. There is no distinction between Canadian securities or foreign securities for capital gains/loss calculations. @David: The T-slips issued to you should have the distributions classified correctly. Capital gains or losses work exactly as it does for other securities. Any Return of Capital is used to reduce the ACB. There is no distinction between Canadian securities or foreign securities for capital gains/loss calculations.

]]> By: David http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-1392770 David Thu, 12 Jan 2012 17:43:44 +0000 http://www.canadiancapitalist.com/?p=948#comment-1392770 Hi EVERYONE Please help I am confused. Would somebody please tell me, how does taxation work for Diversified Monthly Income Fund such as XTR? It can have capital gains, interest, dividends from Canadian and foreign bonds shares and reits. 10 different ETFs in one ETF. How do I know what money came from dividends and what from interest and what is Canadian part of my income ? If I sell it how much of capital gain/loss do I have from foreign vs Canadian securities? How do I deal with CRA at the end of the year? Hi EVERYONE

Please help I am confused.
Would somebody please tell me, how does taxation work for Diversified Monthly Income Fund such as XTR?
It can have capital gains, interest, dividends from Canadian and foreign bonds shares and reits. 10 different ETFs in one ETF. How do I know what money came from dividends and what from interest and what is Canadian part of my income ? If I sell it how much of capital gain/loss do I have from foreign vs Canadian securities? How do I deal with CRA at the end of the year?

]]> By: Alan McNaul http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-997716 Alan McNaul Fri, 14 Oct 2011 16:16:27 +0000 http://www.canadiancapitalist.com/?p=948#comment-997716 I am an investor in a private company in the US. It will be doing an IPO in the new year (if its not acquired by a larger company first) and I will eventually sell some of my stock or all of it. When I do this am I subject to pay tax on the appreciation (capital gain) in the US and in Canada? Or is there another tax treatment this would receive? It is all common stock. I am an investor in a private company in the US. It will be doing an IPO in the new year (if its not acquired by a larger company first) and I will eventually sell some of my stock or all of it. When I do this am I subject to pay tax on the appreciation (capital gain) in the US and in Canada? Or is there another tax treatment this would receive? It is all common stock.

]]> By: Investing Starter Kit: The Knowledge You Need! « The Passive Income Earner http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-419080 Investing Starter Kit: The Knowledge You Need! « The Passive Income Earner Tue, 15 Feb 2011 03:18:28 +0000 http://www.canadiancapitalist.com/?p=948#comment-419080 [...] the TFSA account situation changes. I am including a link to Canadian Capitalist who summarized the tax implication on dividends from foreign corporation. 3. Understanding your different investment options I have not really covered all the types of [...] [...] the TFSA account situation changes. I am including a link to Canadian Capitalist who summarized the tax implication on dividends from foreign corporation. 3. Understanding your different investment options I have not really covered all the types of [...]

]]> By: DavidS http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-313001 DavidS Sun, 21 Nov 2010 14:56:39 +0000 http://www.canadiancapitalist.com/?p=948#comment-313001 First of all, I don't think US and Canadian residents are permitted to buy most Luxembourg and Ireland (offshore) domiciled ETFs. You need to read the fund prospectus and check with your broker. Assuming you can buy such ETFs, note that US dividends paid to a Luxembourg-domiciled ETF are probably taxed at 30%, and you would not be able to claim back this tax. You would pay Canadian tax on dividends paid by the ETF, if any, and capital gains tax when you sell the ETF. You would be better off buying a US-domiciled ETF which holds US stocks. In this case, the US withholding tax would be 15% and you should be able to deduct this from your Canadian tax. When investing in US-domiciled ETFs and US companies, be aware that you may be liable for US estate tax. First of all, I don’t think US and Canadian residents are permitted to buy most Luxembourg and Ireland (offshore) domiciled ETFs. You need to read the fund prospectus and check with your broker. Assuming you can buy such ETFs, note that US dividends paid to a Luxembourg-domiciled ETF are probably taxed at 30%, and you would not be able to claim back this tax. You would pay Canadian tax on dividends paid by the ETF, if any, and capital gains tax when you sell the ETF. You would be better off buying a US-domiciled ETF which holds US stocks. In this case, the US withholding tax would be 15% and you should be able to deduct this from your Canadian tax. When investing in US-domiciled ETFs and US companies, be aware that you may be liable for US estate tax.

]]> By: rad http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-216195 rad Thu, 15 Apr 2010 19:49:23 +0000 http://www.canadiancapitalist.com/?p=948#comment-216195 I live in Canada. If I purchase a ETF (listed on a foreign exchange such as Xetra) domiciled in Luxembourg whose components soley comprise of companies from the United States and the ETF fact sheet indicates that its dividend yield is 1.99% and under ‘Income Treatment’ it indicates “reinvestment” what are the tax implications for the following (assuming the ETF is kept in a non-registered account): 1) How will the dividend be taxed? (According to the fact sheet it mentioned income is reinvested) 2) Will capital gains be treated the same as ETFs domiciled in Canada? (i.e. 50% of the capital gains taxed at your marginal rate) Thank you I live in Canada. If I purchase a ETF (listed on a foreign exchange such as Xetra) domiciled in Luxembourg whose components soley comprise of companies from the United States and the ETF fact sheet indicates that its dividend yield is 1.99% and under ‘Income Treatment’ it indicates “reinvestment” what are the tax implications for the following (assuming the ETF is kept in a non-registered account):

1) How will the dividend be taxed? (According to the fact sheet it mentioned income is reinvested)

2) Will capital gains be treated the same as ETFs domiciled in Canada? (i.e. 50% of the capital gains taxed at your marginal rate)

Thank you

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-187793 Canadian Capitalist Fri, 03 Apr 2009 14:26:15 +0000 http://www.canadiancapitalist.com/?p=948#comment-187793 Traciatim: I believe US dividends from stocks held within a TFSA would be subject to withholding taxes. The reason RRSPs are exempt due to specific provisions in our tax treaty with US: http://www.bylo.org/fp13oct00rk.html Traciatim: I believe US dividends from stocks held within a TFSA would be subject to withholding taxes. The reason RRSPs are exempt due to specific provisions in our tax treaty with US:

http://www.bylo.org/fp13oct00rk.html

]]> By: Traciatim http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-187764 Traciatim Fri, 03 Apr 2009 11:50:54 +0000 http://www.canadiancapitalist.com/?p=948#comment-187764 Do you happen to know if the tax rules are the same for the TFSA, at least in terms of US dividends? If so it would seem that interest should be in your RRSP, US dividends should be in your TFSA, and Canadian Dividends and Capital Gains should be used as taxable investments. Its' a good a plan as any, I suppose. Do you happen to know if the tax rules are the same for the TFSA, at least in terms of US dividends? If so it would seem that interest should be in your RRSP, US dividends should be in your TFSA, and Canadian Dividends and Capital Gains should be used as taxable investments.

Its’ a good a plan as any, I suppose.

]]> By: Dividends of Foreign Stocks in an RRSP http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-164244 Dividends of Foreign Stocks in an RRSP Tue, 28 Oct 2008 14:59:09 +0000 http://www.canadiancapitalist.com/?p=948#comment-164244 [...] But if you hold these stocks in your RRSP, they are not subject to the same rules.  See this post. [...] [...] But if you hold these stocks in your RRSP, they are not subject to the same rules.  See this post. [...]

]]> By: mac http://www.canadiancapitalist.com/tax-implications-of-foreign-dividend-investing/#comment-142800 mac Tue, 15 Jul 2008 20:04:12 +0000 http://www.canadiancapitalist.com/?p=948#comment-142800 Banks in the US are getting beat, would this be a good time to buy them. Example Bank of America | BAC-N is trading at ~$18.83 and pays a yearly dividen of 2.56 (~13% yield). Is this correct, seems like this is a good dividend investment even for a foreign stock? Banks in the US are getting beat, would this be a good time to buy them.

Example
Bank of America | BAC-N is trading at ~$18.83 and pays a yearly dividen of 2.56 (~13% yield). Is this correct, seems like this is a good dividend investment even for a foreign stock?

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