Post #1543 by elann on the US Policy board

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But I just thought I would share my new knowledge: since last year, if you aren't a "US Person" and you own a piece of a US listed partnership, there is a withholding tax when you sell. Not 10% of the dividend, not 10% of the profit, but 10% of the entire sale proceeds. And, as mentioned, if like me you live in a place that doesn't have a double taxation treaty with the US covering this specific situation, that withheld tax is a dead loss.

Nice little example summary at Interactive Brokers:
Buy 200 shares @ 50.
Transaction value = $10,000
Sell 200 shares @ 51.
Transaction value = $10,200
Profit = $200.
Withholding = $1020 USD
Assuming no tax reclaim requests, the loss in value to the investor would be $820

I would assume that you still have the choice of filing a tax return in the U.S. and recovering the excess withholding. N'est ce pas? Maybe it's not worth the hassle to you.

Elan

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