Canadian securities held by americans

[ragnarisapirate]

So, if I, as an American, own a Canadian security (such as FFH), do I have to pay Canadian taxes on dividends, cap gains, or anything of that nature? I know that there is a dividend tax in Puerto Rico and Germany, but that is the extent of my experience.

 

thanks,

 

 

[gaf63]

They will withhold 15% of the div.  When filing  US fed taxes there is a section that allows a credit for foreign taxes paid.

You dont receive the entire 15% back , but if I remember correctly there is a carry over to next yr.

 

[Packer16]

You can get the full amount back if have under $300 for individuals and $600 for joint filers.  If you have more than this amount, then the it is treated as a deduction.  Check with your tax advisor or the IRS for you specific case.

 

Packer

[bookie71]

Actually you get a tax credit on your US taxes equal to the amount paid to Canada so it really doesn't cost you anything.  Kind of like the withholding on your paycheck.