15% “hit” to ADR dividend payment for “foreign tax” There may be withholdings of dividends for foreign ADRs. I am not aware of any withholdings related to CGs. The US and Canadian ADRs have friendlier rules.
The US funds with foreign holdings may pay foreign tax that is included in your yearend
1099. You may claim tax credits for those. If more complicated foreign holdings, you may have to include the Form
1116.
While we are at it:
The ADRs can be company-sponsored or noncompany-sponsored.
The US ADRs (tickers ending typically in "Y") are traded normally, without extra exchange fees (about $50 per trade) for foreign listings on the Pink Sheets/OTC (tickers ending typically in "F"). Examples that have both include VW (VWAGY, VWAPY; VLKAF), Porsche Holdings (POAHY, POAHF), SoftBank (SFTBY; SFTBF), etc.
Fido has a basic link on ADRs.
https://www.fidelity.com/learning-center/investment-products/stocks/understanding-american-depositary-receipts
15% “hit” to ADR dividend payment for “foreign tax” The foreign tax withholdings are lost money in an IRA. ADR with foreign tax withholdings should be held in a taxable account. Canadian and UK stocks can be held in an IRA since they do not withhold taxes on dividends held in an tax deferred.
Sounds reasonable. The only problem I’d have is I trade in & out of this ADR about a dozen times a year, locking-in short term gains and taking profits. To my knowledge there’s been no
short-term cap gains taxes reported or paid. Trading like that inside a taxable account might create a lot of short-term cap-gain taxes - and a nightmare at tax time.
Anyone know if U.S. capital gains tax law would be the same for an ADR?
From robockman
1 -
“The foreign tax withholdings are lost money in an IRA.” - But wouldn’t that also apply to a fund like DODFX? Wondering if that “lost money” just isn’t noticed because it’s hidden inside the “other fund expenses.” ?
15% “hit” to ADR dividend payment for “foreign tax” Just had my first encounter. Here’s a
link that explains it.
Questions:
- Since the ADR is held inside a Roth, is there an easy way to recover that tax?
- Is it wiser in tax-sheltered accounts to invest in foreign stocks thru U.S. domiciled
funds? Do funds employ measures that mitigate or eliminate the tax for such accounts - or are the taxes simply hidden as “other expenses”?
- If you really liked a foreign stock (and the currency hedging aspect) could you still justify owning the ADR in a tax-deferred account while paying the tax?
S&P Enters Bull Market DJIA has more cyclicals, and only
14.62% is "industrials" now. Its price-weighted design is also flawed, but it has been heavily promoted by DJ/
NWS and
SPGI (in the US and abroad). Walter Cronkite famously said that he just reported DJIA in his daily news broadcasts but didn't fully understand what it was (web search failed to produce any specific quote).
Nasdaq Comp is growth and tech-heavy. Market-cap weighted.
SP500 is a blend (of growth and cyclicals) and is broader. Often, the market-cap weighted SP500 SPY is compared with equal-weight SP500 RSP to see how the broad market is doing.
https://stockcharts.com/h-perf/ui?s=SPY&compare=RSP&id=p26386927283
Anybody Investing in bond funds? @FD1000,
You began a 90 day "sabbatical" from the
BIG BANG! Investors forum less than
12 hours ago.
I'm shocked (shocked!) since I thought you would temporarily refrain from posting while on sabbatical.
Then again, you must heed the urgent need to mention your superior proprietary system for the
1,000th time.
I hope you feel better now that you've got this off your chest!
I don't care what an MFO poster experienced at Big Bang. Big Bang is part of the Free Forums system, in which any person can start "their" own Discussion Forum. The person starting that Free Forums site, becomes the Administrator, with the power to create rules of conduct, and can make a unilateral decision to punish/remove any poster on that forum, for whatever reason they choose. I do not have the details available to me, associated with the Big Bang Administrators actions, and I do not think any other poster on MFO, has the details of that action, nor should be forming opinions about its appropriateness/inappropriateness.
To me, the only thing that is relevant, is that an MFO poster abides by MFO rules of conduct and posting. As far as I know FD has the freedom to post as he pleases at MFO, until the MFO forum decides otherwise.
S&P Enters Bull Market If people are only investing in a 500 stock cap-weighted world it might be hard to get at those other companies doing well.
My wife is the only one of us with a 500 index fund, which is in her taxable portfolio. Over the past 12 months it has been outperformed by GRID, FIW, IHDG, and CGW in addition to tech sector funds. She has PSCC in her IRA. And that has beat the 500 over the past year, and over its lifetime. So those are a lot of consumer, health, and industrial stocks, a fair number of which aren't even in the 500.
Of course there are duds too. It's hard to beat the market. So it's no wonder people are talking about T-Bills and CD's when they are paying over 5%. That's a lot of headwind for stocks that don't pay dividends, and might not be growing reliably in an inflation-for-longer environment.
Seemed like few of the folks quoted in the article cited in the OP seemed enthusiastic about the new bull.
S&P Enters Bull Market Bull Market Watch
Major indexes bottomed at different times in 2022, & their status in 2023 are also quite different.
DJIA +17.89% (low in 10/2022)
SP500 +20.04% (low in 10/2022)
Nasdaq Comp +29.62% (low in 12/2022) (was +19.46% in 02/2023)
DJ Transports +20.02% (low in 09/2022) (was +30.34% in 02/2023)
IWM/R2000 +15.67% (low in 06/2022) (was +22.68% in 08/2022, +22.19% in 02/2023)
DJ Utilities +9.76% (low in 10/2022)
Early movers R2000, Nasdaq Comp, DJ Transports reached the bull market (+20% from prior low) first, but now SP500 has made it, and DJIA may follow (& Dow Theory followers declaring a new bull market). Forget about DJ Utilities. Note that there was a powerful move in early-2023 - some called it a huge "thrust", then a minor dip, and then the debt-ceiling fiasco only restrained the markets (i.e. didn't harm it).
wow, financials. 5 day comparison +1 PressmUP on your avatar change!
17 week T-Bill purchase executed 06/08/2023 4-Week 9
12797FR3 06/06/2023 07/05/2023 5.
130% 5.237%
8-Week 9
12797GA9 06/06/2023 08/0
1/2023 5.220% 5.350%
17-Week 9
12797GV3 06/06/2023
10/03/2023 5.325% 5.5
11%
@yogibearbull That's what I found earlier today. NO 06/07 auction it appears. Issue , auction, & announcement are all self explanatory .
YBB Thanks again Your second link shows an auction for
17 week T-Bill. Added on 06/07
Anybody Investing in bond funds? @FD1000,
You began a 90 day "sabbatical" from the
BIG BANG! Investors forum less than
12 hours ago.
I'm shocked (shocked!) since I thought you would temporarily refrain from posting while on sabbatical.
Then again, you must heed the urgent need to mention your superior proprietary system for the
1,000th time.
I hope you feel better now that you've got this off your chest!
Sabbatical
We can't provide validation.
But we can provide attention.
Has he enjoyed the attention we have given him?
It will have to do.
17 week T-Bill purchase executed 06/08/2023
wow, financials. 5 day comparison +1.
Anybody Investing in bond funds? @FD1000,
You began a 90 day "sabbatical" from the
BIG BANG! Investors forum less than
12 hours ago.
I'm shocked (shocked!) since I thought you would temporarily refrain from posting while on sabbatical.
Then again, you must heed the urgent need to mention your superior proprietary system for the
1,000th time.
I hope you feel better now that you've got this off your chest!
17 week T-Bill purchase executed 06/08/2023 If that T-bill was sold out, the order shouldn't have been filled.
At the auction, Treasury first accepts all the non-competitive bids that comply with the auction rules.
Then, we accept competitive bids based on their rate, yield, or discount margin (from lowest to highest) until the entire amount of the offering has been awarded.
https://www.treasurydirect.gov/auctions/how-auctions-work/All non-competitive bids were filled. There were some T-bills (actually about 94%) "left over" for the competitive bids.
TREASURY AUCTION NONCOMPETITIVE RESULTS
Term and Type of Security 119-Day Bill
CUSIP Number 912797HA8
Issue Date June 13, 2023
Maturity Date October 10, 2023
Original Issue Date June 13, 2023
Total Offering Amount $46,000,000,000
Amount Tendered
Noncompetitive $691,380,800
FIMA (Noncompetitive) $2,000,000,000
Tentative Total $2,691,380,800
Approximate Amount Remaining for Competitive Bids $43,308,619,200
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/NCR_20230607_1.pdf
S&P Enters Bull Market ”It’s official. We’re in a bull market” / ArticleNice to report some good news.
“
The S&P 500 rallied Thursday to end the day in a bull market, marking a 20% surge since its most recent low, reached on October 12, 2022. That brings to end the bear market that began in January 2022. Buoyed by gains in big technology stocks, the broad-based index closed at 4,293.93 and crossed the threshold that separates a bear market from a bull market — that’s investor-speak for a period of time marked by rising stock prices and optimism on Wall Street. Investors are certainly in a buying mood: CNN’s Fear and Greed Index hit ‘Extreme Greed’ Thursday. Markets have remained surprisingly resilient over the past nine months, as 2022 losers like tech and media have bounced back from a disastrous year on hope that the worst is over for those industries.”
d
Anybody Investing in bond funds? Unfortunately, I can't discuss what funds I own because it's part of my proprietary system.
LOL.
Every forum has at least one.
17 week T-Bill purchase executed 06/08/2023 Announcement 6/6, Auction 6/7 bought on 6/6 I received message today of purchased which showed 08/08/23 - 04/11/23. That appears to be a T-bill bought at market. Called VG today & rep said it was an auction purchase. I'll be calling tomorrow , bright & early to see if I can get a reason as to why this happened. If that T-bill was sold out, the order shouldn't have been filled. Maybe no fill or kill at VG ?
Anyone have any ideas ? Rep also mention it maybe a RO bill, reopened. If that is the case, wouldn't it show on the pre- schedule ?
Thanks, Derf
Concerning SPY and concentration in top 5 holdings
The Next Crisis Will Start With Empty Office Buildings @LewisBraham- Sorry, but I have to disagree on this one- the Examiner article refers to an individual as I described above in reply to Anna: an ordinary person who has fallen on really bad times. There are in fact a number of organizations here in SF who do really excellent work in helping out in those types of situations, and my wife and I have substantially supported them for many years.
To repeat- the majority though, at least here in SF, are druggies, thieves and crazies who respond to nothing other than their next high. A number of the hotels described in the Examiner article were substantially trashed during the pandemic temporary housing program- something that the Examiner chose not to report.
A short excerpt from a pertinent report in the San Francisco Chronicle:
Hotels are seeking millions from S.F. for damage when they were homeless shelters.
Hotel Union Square’s cleanup bill was steep — $5.6 million to repair rampant smoke damage, broken light fixtures, mold and other problems.
As city supervisors consider shelling out millions to settle the dispute over damages at one of San Francisco’s hotel homeless shelters, taxpayers could be on the hook for millions more to settle similar claims from other hotels that participated in the program.
In September 2021, the owners of Hotel Union Square filed a claim with the city, alleging unhoused residents who the city had placed there had caused $5.6 million in damages — and cost the Dallas-based hotel operator hundreds of thousands more in lost rent.
City officials created the Hotel Program in 2020 during the COVID-19 pandemic and used it to house more than 3,700 high-risk residents in 25 hotels. With federal and state funding drying up, the city has gradually closed most of the hotels.
