Thu, Mar 5, 2015, 6:18 AM EST - U.S. Markets open in 3 hrs 12 mins


% | $
Quotes you view appear here for quick access.

Baytex Energy Corp. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • arbtrdr arbtrdr Sep 17, 2006 1:53 PM Flag


    A Canroy is taxed exactly the same as any other stock except the Canadians withhold 15% and you can get the 15% back when you file your US taxes (with a few exceptions, but they rarely apply).

    The big difference is you do NOT get a 15% credit for Canadian taxes withheld if you hold in a regular or Roth IRA.

    Thus -

    #1 in a Roth you pay 15% at the time of dividend.

    #2 in a regular IRA you pay 15% at the time of the dividend and your ordinary income rate when you withdraw the money. In your example 52%

    #3 in a short term holding you pay 15% at the time of dividend and 22% more when you file your taxes (37% less a 15% credit)

    #4 in a long term holding you pay 15% when dividend is paid and get a 15% credit when you file your taxes for that year. You then pay the capital gains rate (currently 5% or 15%) when you file taxes for the year you sell.

    My comment is holding in a regular IRA is not good. Other than that you need to decide. Your regular account STCG calculation is not correct in that you pay at ordinary income rates (37%) while the Canadian tax is simply netted out by the US cdedit. Similarly you pay 15% to the US on a STCG (plus your state tax) with the Canadian tax being credited back by the US.

    Last comment. After 2010 the 15% LTCG rate goes away and is currently stlated to go to 25% I believe. A Democratic Congress and/or President would make that happen.


    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • ARB,
      Thanks for taking the time to answer so thoroughly-MUCH
      appreciated. I'm going to run some numbers to see how it actually breaks down when I do the math. Also---your last comment very well taken for the long pic view and something
      to cocnsider in long range planning.

      Just had dinner a friend who has his own hedge fund- he
      says he'd put $ in Brazilian 8 year zeros-- 15% return
      linear, 26% all in --so in his exmaple, he put down about
      4.9 million which will net 15 million in 8 years --but that
      doesn't include any risk of currency fluctuations. He
      thinks Brazil is just at the beginning of expansion with
      that bet- obviously. If you have access to Bloomberg,
      you type in JBRL5 60, look under 8 year bonds. Because he did this a while ago-- you might have to go out to 10 years to get the same yield. This is all new terriotory for me--
      but thought I'd mention it as another possible option
      out there to check out.
      Thanks again for all your time and informed input.

14.83-0.76(-4.87%)Mar 4 4:02 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.