jander

Is Harvest Energy Trust's Premium Valuation Justified?

To User 167894. I hold HTE in my IRA. The only way I have found to reclaim the 15% Canadian tax witholding is by withdrawing the dividends from my IRA (I'm over 59 1/2) so the earnings become part of my gross income (AGI). I then claim the foriegn tax credit for the HTE dividend income on my tax return. According to the IRS rules, the foriegn tax credit can only be claimed on income that is part of your taxable AGI. Since dividend income in an IRA is not part of your AGI, the foriegn tax credit cannot be taken if it remains in the IRA.