The following may be of interest to those who hold Acclaim in taxable accounts:
The distributions from Acclaim (ACNJF) that appeared in my Fido TAXABLE accounts Friday showed tax withheld. Yesterday I went to my local Fido office and discussed it with my Premium Rep. Not surprisingly, he didn't have much of a clue, but put me on the phone with the Corrections Dept (not sure, but don't think it is located at Attica). The woman with whom I spoke kept wanting to talk about how CRT distributions "generally" work. I explained the difference with Acclaim (i.e., 100% ROC) and gave her the website with the press releases. She said she would look into it with Fido's tax folks and foreign specialists.
I just got a call from "Corrections" and was told there was a slip up caused because of the new CUSIP created upon the reverse split, that I was correct that no tax should have been withheld, and that an adjustment has been made to my accounts. I just checked, and I have been made whole.
If you have Acclaim in a taxable Fido account, you kght want to check out your distribution.
When I questioned Fidelity on the discrepancy in the corrected credit, they did explain that it had been credited in US $ and they had used an exchange rate of .65. I then questioned this because the rate has been in the low seventies during that period. In checking I find the rate to have closed at .75. They are checking this and will get back to me.
Inspector, does Fido show the corrected distribution for your Acclaim distribution as return of capital (ROC)? I am a Fidelity customer and would like to buy some Acclaim. I have had no luck this past tax year having Fido show the proper(ROC)on all of my Canadian royalty trust. They refused to adjust my 1099's and showed the gross distributions as "royalties" on the 1099 miscellaneous form. Did you have that kind of problem with Fido?
In 2003 until the June distribution, Fidelity showed Acclaim as all ROC. For June, they showed ROC and foreign tax. I called Monday morning, and they fixed it in less than 24 hrs. The person from the "corrections department" (which may or may not be located in Sing Sing :-}) said the problem was caused by the change in the CUSIP resulting fromAcclaim's reverse split. I hold all other Canroys only in non-taxable accounts, so ROC or "royalty" has not been an issue for me.
delotto, did Fido really show all your distribution as Royalties or as dividends? Did Fido showed some as div some as royalties?
My broker datek showed them all as "dividends", the worst. Royalities can deduct depletion on your schedule E then you don't pay any tax on them. Which trusts did you own?? I want to have find a brokerage showing all distribution in "Royalties". Thanks a lot.