(09-15-2015, 10:35 AM)Rasec Wrote: Still worried about the tax aspect of it, for non US companies (CA in this case) in a normal *taxable* brokerage account, how are taxes held and declared?
Any americans with experience in this case?
Taxes are held from the dividend cash distribution in a brokerage account, with the US-CAD Tax Treaty there is no double taxation, as a US investor there is a 15% foreign tax exemption. If CAD investments are held in a retirement account such as a ROTH IRA it's all tax free under the current policies.
In my brokerage account I receive all dividends in cash for later investments, regardless of company-country origin. In my ROTH account it's a mixture of both--all my foreign investments are dripped and currently the US companies are selectively dripped or dividends received in cash unless or until the maximum $5500 is allocated then after that, all dividends are dripped until the new year. In order to be a more disciplined investor I contribute weekly in the ROTH then as monthly dividends come in I allocate the dollars to a stock once the cash reserves hit $1000 to 1500. If I put in $5500 this morning, I won't hold onto it, it will be invested within hours, I have ZERO CONTROL with cash in my account! It's extremely difficult in times like the one we're currently experiencing because I see a lot of great buys and want to invest right now rather then later. Okay, I'll stop now because I went off on a tangent.