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

Withholding tax question

[Compypaul]

I own shares in two TFSAs and both had the withholding tax taken out at the beginning of March. Are others experiencing this? And is there a way to recoup or avoid this (by moving the shares to a cash account, for instance)?

[flamingogold]

I am holding the symbol HOT.UN on the Canadian exchange. Is it possible some are holding HOT.U or AHOTF which are both in US dollars? I have not seen any tax come off. I also own HHL which holds all US listed healthcare stocks. No tax withheld there either.

[Compypaul]

The tax came off HOT.UN shares, held in Canadian dollars, in TFSAs. I journaled (I think that's the correct term) some RRSP shares over to US dollars in order to collect dividends as American cash, but no tax was removed from that account. I'm with Scotia iTrade.  Which is correct, do you think, according to the wording of the regulation: tax deducted or not deducted?

[sollmg]

SUMMARY OF APPLICABLE U.S. WITHHOLDING RATE ON ORDINARY REIT DIVIDENDS INVESTOR TYPE RATE OF U.S. WITHHOLDING TAX ACCESS TO CANADIAN FOREIGN TAX CREDIT DEDUCTIONS? Canadian Individual 1,3 15% Yes Canadian RRSP 1 0% N/A Canadian TFSA 3,4 15% N/A

[sollmg]

Check the company website under investor relations tab. Alot of the info didn't transfer to here.

[rabnud]

what info are you referring to  the info posted clearly indicates HOT has the position where with holding tax is NOT TO BE WITHHELD 

[rabnud]

yes thats why I started this  thread if you cared to read  ;; according to hot management this IS NOT supposed to happen on the HOT.UN distribution  All scotia would say to me is they  look at stuff like this once a year in april and refund where required  so these aholes take money every month and you have wait up to a year or more for them to maybe refund it  even

[flamingogold]

I would change your broker or at least open an account with someone that follows the rule to hold this equity. I can tell you I am with TD and I have not had any portion of my distributions withheld.

[flamingogold]

Every broker handles situations differently. I know that when the markets were falling during covid TD had put buying restrictions on certain so called "high risk" equities. There were split funds that I often trade. Pre-covid and now post-covid there is no restriction anymore. However, Scotia never implemented any buy restriction at all. When I called TD I was told that the "

[Investorguy123]

Check tomorrow payout. TD usually late on the payout. So check March payout when you received. Make sure it is 100% not 85%.

[lashing]

My dist is in TD TFSA account and was always fine. All the sudden today they started adding and correcting and subtracting like crazy and now they seem to have completely removed my jan dist This is crazy.  There is no reason for withholding tax on this dist. 

[bcsc]

TFSAs are not subject to the US/Canada tax treaty and are therefore subject to 15% withholding tax on income distributions. (There is no withholding tax on Return of Capital portion of distributions) Furthermore there is no Foreign tax credit available if held within a TFSA. This information is available on the American Hotel Income Properties website. Go to Income Tax Information under Investor

[lashing]

TD has now completely removed my March dist and is redoing Jan's by INT, ROC, and DIV in 3 transactions. So the theory about withholding tax is nonsense. Someone at TD messed up everyones accounts and now someone else is trying to fix it.  But this, especially now erodes confidence in TD.

[Investorguy123]

Did TD remove 15% withholding tax from your TFSA account? We all know AHIP has informed the brokers the payou will be 100% dividend in 2023. IN THEORY, you should have no withholding tax in January because it was the payout for 2022 Dec (100% return of capital).   You would have 15% withholding tax in Feb and March.

[flamingogold]

I can confirm this as well. TD made several adustments last night. The Jan distribution is now ROC and Interest and Feb is comprised of US dividends and withholding tax. March will likely show up tomorrow and will mirror that of February. The greedy claws of the US now extend further into Canadian pockets. I still maintain this is an undervalued play and even with the WHT the opportunity for 2x

[lashing]

Their is no witholding tax. The IRS has nothing to do with it. Its CAD to CAD but in USD. Further there is no way to reclaim witholding tax held in a tfsa as there is no tax thus no filing. HOT has all the info here; https://www.ahipreit.com/investor-relations/income-tax-information/canadian-unitholders/default.aspx and more specifically what they have served brokers here; https://s22.q4cdn.com

[bcsc]

The first link you provided shows very clearly in the chart halfway down the page that Canadian Individual, TFSA, and Corporate unitholders are subject to 15% withholding tax on ordinary dividends and that TFSA and RRSP unitholders are not eligible for Foreign Tax Credit. The second link you provided states "At the end of AHIP LP's taxation year (December 31) the US and Canadian taxable

[lashing]

See this is what happens when you dont know but speak. Here is statement from HOT.UN to clarify for you. Since you are completely ignorant yet want to pretend you're an expert.  We’ve issued the required Qualified Notice to notify brokers and others that no withholding applies under Section 1446(f)