Non-Canadian investors owning a Canadian royalty trust is subject to a foreign income tax of 15% of payouts. This 15% tax can be claimed on US taxes from a Form 1099. This makes Canadian royalty trusts better investments for taxable accounts in the US.
* In non-tax accounts such as an IRA, you will be double taxed by Canada upon distribution date and US when funds are withdrawn from the IRA. The US royalty trusts do not have a 15% foreign tax so they can be held in tax-deferred accounts.
So I come back from a friend doing a Mozart benefit and stop by the library on the way home. Upon return the OLB is contradicting prior emotional tantrums with new tantrums.
So the OLB Sweetie Willie was just flat out wrong like you on American taxation of qualified Canadian dividends?
RLP'D the delusional-compulsive reads the Barrons posts the part no mentioning CSX. Surely despite what market analysts seem likely CSX will only move oil to refineries in a big find opens in their service area!
Actually if any one bothers to listen to the rail call; which I highly recommend for color on our over all economy if nothing else, CSX was working to bring on oil transport. But did not wish to get into the details - negotiation probably underway.
Hey the OLB are experts and born with superior luck to average people. Just ask them!
But one wonders what benefit their chatter could be to rational investors managing their savings when they get caught with lies and dissembling as RLP'D Opinions and their Sweet Willie did in the last 24 hours.
Bottom line you will pay double on canadian taxes and US taxes when withdrawn from your IRA. Great investment. Yes i am an expert. You on the other hand are still learning 3-5 years in the market. Don't worry Mr. 20% you get off those training wheels at some point.
But one wonders what benefit their chatter could be to rational investors
Answer, alot more than you.