Discussion:IRA INVESTMENTS
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Discussion Forum Index --> Tax Questions --> IRA INVESTMENTS
| 29 January 2007 | |
| MY CLIENTS IRA INVESTED IN OIL TRUST THAT PAY DIVIDENDS NET OF THE CANADIAN TAX OF 15%, HOW CAN THE IRA OR MY CLIENT RECOVER THIS MONEY? | |
Mtmckeecpa (talk|edits) said: | 29 January 2007 |
| Kd,
It is my understanding that the IRA can't reclaim the withheld money. That would be one reason to avoid buying foreign stocks/bonds with the IRA, the IRA can't get the credit or tax deduction. | |
| 29 January 2007 | |
| MY CLIENT HAS MADE DISTRIBUTIONS EQUAL TO THE DIVIDENDS AND INSISTS ON CLAIMING THE FOREIGN TAX CREDIT ON HIS RETURN. | |
Death&Taxes (talk|edits) said: | 29 January 2007 |
| Distributions of Net dividends after the tax? | |
Death&Taxes (talk|edits) said: | 29 January 2007 |
| So he has his deduction.....when all the money is gone, he won't pay tax on the money that Canada took. | |
| January 29, 2007 | |
| Right. He can't take the foreign tax credit for IRA distributions. | |
Death&Taxes (talk|edits) said: | 29 January 2007 |
| Lotsa luck getting him to accept the explanation. | |
| January 29, 2007 | |
| This reminds me of a client I have who lost a bunch in Enron in her IRA account. Every year for the last several years, she asks me if she can deduct the Enron loss. And I tell her the same thing every year. | |
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