01-23-2021, 02:10 AM
How are Canadian ETF's/stocks' dividends taxed for US residents?
<!-- SC_OFF --><div class="md"><p>Because of the paucity of investment options in the Canadian marketplace, a lot of Canadians buy stuff like ARKK or VGT or what have you (obvously in USD) and then deal with the foreign withholding taxes on the dividends that they produce.</p> <p>I was wondering how that works in reverse though. For instance, let's say as an American resident you wanted targeted exposure to the Canadian markets, so you bought <a href="https://XIC.TO">XIC.TO</a>, or you wanted to buy a Canadian company directly like Nortel (hehe). Or maybe you're a Canadian who works in the US but you still hold something like VGRO.</p> <p>How does the IRS see Canadian stocks and ETFs from a dividend tax point of view? Is it any different from Canada?</p> <p>(Assuming it is in an un-registered account as I'd imagine the other types of accounts get more complicated.)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/AXdssd5as"> /u/AXdssd5as </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/l2o2oh/how_are_canadian_etfsstocks_dividends_taxed_for/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/l2o2oh/how_are_canadian_etfsstocks_dividends_taxed_for/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Because of the paucity of investment options in the Canadian marketplace, a lot of Canadians buy stuff like ARKK or VGT or what have you (obvously in USD) and then deal with the foreign withholding taxes on the dividends that they produce.</p> <p>I was wondering how that works in reverse though. For instance, let's say as an American resident you wanted targeted exposure to the Canadian markets, so you bought <a href="https://XIC.TO">XIC.TO</a>, or you wanted to buy a Canadian company directly like Nortel (hehe). Or maybe you're a Canadian who works in the US but you still hold something like VGRO.</p> <p>How does the IRS see Canadian stocks and ETFs from a dividend tax point of view? Is it any different from Canada?</p> <p>(Assuming it is in an un-registered account as I'd imagine the other types of accounts get more complicated.)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/AXdssd5as"> /u/AXdssd5as </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/l2o2oh/how_are_canadian_etfsstocks_dividends_taxed_for/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/l2o2oh/how_are_canadian_etfsstocks_dividends_taxed_for/">[comments]</a></span>Kind Regards R