American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

Question to HOT.UN unitholders/NON-Registered Accounts

[StormyD]

I received my T5013 re HOT.UN from BMO on Friday, started processing my tax filing online on Saturday, and discovered that I will have a significant 'loss' of IRS Withholding tax that BMO levies (Box 171). The problem boils down to this: BMO charges 15% IRS WHT on monthly distributions, and incorrectly reports the total amount withheld in the T5013. They should only report 15% of the Foreign Income (Box 135), AND refund to the client the excess IRS WHT paid. Since HOT.UN distributions in 2018 comprised 68% Return of Capital, this results in a significant loss to the client. CRA limits the Foreign Tax Credit to the 15% of Box 135, and states that any excess is considered your 'voluntary contribution' to Uncle Sam.

My question: have any of you with accounts at other firms - such as TD, CIBC, BNS, etc. - had any positive (and correct) experience of the brokerage refunding excess IRS WHT to the client at the end of the tax reporting cycle?

I now know that one should only purchase units of HOT.UN in Registered Accounts. Live and learn!

Thanks in advance to anyone willing to share!