Pure Multi-Family REIT LP PMULF

Question re IRS withholding tax on RUF.UN

[CanSiamCyp]

I have held RUF.UN for several years in a non-registered account. BMO applies 15% IRS withholding tax on entire monthly distribution - despite high level of exempt ROC in distribution (approx. 70% in 2017). According to Andrew Greig, brokers can apply for return of overpayment from IRS and refund to clients. BMO has never done this for me. Please share any experience with other brokers. Would appreciate knowing if ANY brokers actually refund overpayment to clients. Thanks in advance!

[TimeBuilder]

CSC....FYI: We are with TD DI and sold all our RUF.UN shares held in our cash trading & TFSA accounts a long time ago because of the non refundable withholding tax imposed through RUF/IRA......We now only hold RUF in RRSP/RRIF accounts maximizing the distribution. Believe this Tax is non refundable unless you are filing a USA tax return and  then you can claim it back at that time. Also

[CanSiamCyp]

TB: Thanks for your response! You are correct that TFSA accounts are not covered by the tax treaty between USA & Canada - unlike RRSPs/RRIFs - so it is always advisable to place US stocks in RRSP. The IRS tax charged on RUF.UN in a non-registered account is claimable as Foreign Tax Credit against CRA tax payable - so nothing is 'lost' by the investor. Just bugs me that the USA is

[pierrelebel]

I hold RUF.UN in my TFSA at CIBC and there is no tax withholding on the monthly distribution. I get US$0.03125 multipied by the number of units I own multiplied by the current exchange rate (appx 1.3x) and this is the amount credited to my account monthly.  I took a quick look at some monthly statements last year (2017) and same thing: no tax withholding.

[CanSiamCyp]

You are lucky! Held within TFSA these distributions are not exempt from IRS WHTSometimes you are lucky to have an error in your favour. Whatever you do don't mention to the bank! Lol! I had similar situation with HOT.UN in taxable margin account. No IRS WHT for 18 months! Now BMO has corrected back to Feb. 2018!

[pierrelebel]

My wife holds HOT.UN in her TFSA (also at CIBC) and, once again, there has been no US withholding tax on the distribution. HOT.UN and RUF.UN are the only REITs with US dollar distribution we hold in our TFSAs. Everything else pays in Canadian dollars.

[CanSiamCyp]

PL:  You are fortunate that CIBC has apparently let these two slip through the cracks! While non-resident, I discovered that there were significant differences in the way major institutions (i.e., TD vs. BMO) applied non-resident tax on specific Canadian investments. Go figure! The issue with HOT.UN and RUF.UN is not that they pay US$ distributions, but their corporate structure as REIT LPs

[pierrelebel]

CORRECTION - CORRECTION - CORRECTION Received in the mail our August monthly statements today from CIBC. On the printed statements, CIBC in fact deducted 15% withholding tax on both TFSA accounts for US dollar distributions (HOT.UN and RUF.UN). These deductions are NOT shown on the online "transactions".  Only the gross amount shows as a credit with no matching debit for the