On March 9, from Chuck Davidson
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.