Another Question Regarding Taxation

On March 9, from Chuck Davidson

Question:

This question surrounds the uncertain circumstances surrounding withholding tax in the U.S. on any investments earned on the U.S. exchange. I know that if these are held in an RRSP that a treaty existing between the U.S. and Canada prevents the U.S. from withholding tax. Outside the RRSP this, however, gets into more uncertain territory requiring a W8BEN form which may have to be refilled every 3 years. Thanks.

Monday Morning Millionaire Program Answer:

As a general principle about taxation issues please note the following statement from Warren Buffett:

“I have worked with investors for 60 years and I have yet to see anyone – not even when capital gains rates were 39.9 percent in 1976-77 – shy away from a sensible investment because of the tax rate on the potential gain.”

For greater detail, follow this post, where we answer a similar question from Abutment Direct President, Mike Parsons.

Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me