08-16-2015, 03:01 PM
(08-15-2015, 06:01 AM)Caversham Wrote: Since it is foreign, what are the tax implications of ETN?
Someone posted this info in the comment thread of the article.
curious, but little known tidbit about US tax treatment of ETN dividend , is apparently considered return of capital , much like a MLP , reduces ones capital account or basis so would be essentially tax free till selling , then recaptured as either long or shot term gain . Long term hold, no effective tax.
Date: July 21, 2015
DUBLIN, Ireland … The Board of Directors of power management company Eaton (NYSE:ETN) today declared a quarterly dividend of $0.55 per ordinary share payable August 21, 2015 to shareholders of record at the close of business on August 3, 2015.
For U.S. tax purposes, Eaton estimates that all of the 2015 dividend will be treated as a return of capital to shareholders, to the extent of the shareholder’s tax basis in the shares. Additional information about the tax treatment of the dividend, including actual return of capital information for 2014, is available at the investor relations page of the Eaton website, http://www.Eaton.com.
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Hope that helps!