ariesl

Fording Tax Avoidance Deal: Lots of Unanswered Questions

Does anyone understand why those of us who still held shares of FDG until the actual buy out day were hit with a 15% withholding tax ON THE ENTIRE AMOUNT. NOT JUST CAPITAL GAINS, BUT COST BASIS AS WELL. This makes no sense to me. The shares, by the way, were held in a US Roth IRA. If I was younger, and it was a regular IRA, I would have to pay a 10% penalty for early withdrawal (the taxed amount was withfrawn from my account and dispersed to the Canadian Gov. 5 days after the distribution from TCK).Even worse, I'd then have to claim the dispersement as income and pay tax on that. Luckily, I sold almost all my shares ahead of the completion of the merger. I'm still mad about on principle. If anyone is sure my brokerage screwed up, and can think of a solution, please post it here. I'm sure I'm sure I'm not the only one concerned.