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Taxes on International Stock (IRA vs Taxable)


DoddDisciple

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Looking for a little guidance.

 

I understand you can't claim any withholdings on dividends via the Foreign Tax Credit in stock held in an IRA. However, since I'll be getting small, family-owned companies, do foreign countries withhold on special one time dividends (say, like what George Risk did in the past) or on liquidation payments or any of the other exit strategies these companies can follow?

 

I'm not as concerned about dividends on stocks held in an IRA, since I'm mainly looking for capital gains, being bought out, and special one time distributions. How are these latter two categories penalized if a foreign stock is held in an IRA, if at all? For example, if I hold a French company in an IRA and get bought out and paid cash, does France take a 40% cut like they would on an routine dividend? What about if a firm issues a special one-time large dividend?

 

Thanks :)

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