TSX:HOT.DB.V - Post by User
Comment by
pierrelebelon Feb 15, 2022 9:43am
182 Views
Post# 34429507
RE:RE:RE:RE:RE:RE:RE:RE:Tax Refund?
RE:RE:RE:RE:RE:RE:RE:RE:Tax Refund?
"...a TFSA was the wrong place to hold this stock due to the higher teturn of capital portion of the distribution and that it doesn't shelter you from the U.S. withholding tax....."
That is correct.
A TFSA generally should not be used to hold foreign securities (US) since the 15% withholding tax on dividends/distribution cannot be recovered.
However, in some instances, one may decide to hold such securities (HOT.UN in this instance) on the basis that the overall return justifies the "loss" of the withholding tax. However that was a decision made in 2015 (when I purchased HOT.UN) when the REIT was very different.
I would not do it today.