cloclo

Six Canadian Banks That Should Reward Long Term Investors

Whatever you do, remember that the Canadian government will withhold 15% of your dividend for taxes. To recoup at least a portion of it as a foreign tax credit you may have to file IRS form 1116 with your 1040 tax return, and that may complicate the preparation of your U.S. federal income tax return a little bit. People who promote foreign stocks seldom say anything about the tax consequences.

TD Bank - Too Good to Pass Up

I hate to throw away 15% of my TD dividend as Canadian withholding tax. Moreover, when the value of Canadian currency goes down in relation to the U.S. currency, the dividend goes down. On a more personal basis, when I last went to a TD bank (Canada Trust) in Canada to exchange U.S. dollars for Canadian dollars, while on vacation last July, the bank refused to do it because I did not have an account with them. I explained I was a TD shareholder, and it make no difference. I had to change my money at the hotel.