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

RE:RE:"Return of capital" used to reduce ACB

[smalltimeinvest]

nedstar71 wrote: I see nothing wrong with hilding this in a non registered account. Love the 40% ROC and the withholding tax is recoverable using the foreign tax credit in an unregistered account is it not? I wouldn't hold it in a TFSA. I can find better uses for my TFSA that that don't involve a stock with an unrecoverable withholding tax (in that particular account).

I bought this into my TFSA account this past Monday. The reason I did that is because the net cash return rate even after the witholding tax is still above 10% - to me that equation is simple. And the fact that if it did appreciate, like it unexpecdedly did the past four days, and I sell (which I am not planning on at all)  the capital gain is tax free. 

Personnally, I take the witholding tax into context of an overall return for TFSA purposes when buying in my TFSA. Everybody will have a different circumstance based on thier tax rate. I also hold a small amount in a non registered account since last summer. 

Thank you for all the helpful info!

GLTA