Replies to post #180 on High-yield/macroeconomics (fka YIELD)

[rfj1862]

>I’ve avoided Canroys because my high yield investments are in my taxable account and I habitually avoid tax complexities (I do my own returns)... I understand, that it is wiser to put high yield stocks in nontaxed accounts to avoid tax on the annual distributions. My purpose, however, is to generate money for living expenses.. taxes cannot be avoided.<

If you're doing your own taxes, it is pretty smart to stay away from Canroys. Given the extra charge I get from my accountant, it must be a pain to deal with.

Canadian trust dividends qualify for the 15% rate, so they can be kept in a taxable brokerage account. Harvest's distributions are subject to a 15% foreign withholding tax. However, you can claim a foreign tax credit on IRS Form 1116 if you hold the stock in a taxable brokerage account. Foreign tax credits usually can't be recovered from a tax-deferred account.