[DuckConference]

I'm considering of putting some money into some US-based royalty trusts, and I was wondering what the taxation on their distributions is like for a canadian. Will it all be at my marginal rate, or does the return of capital factor into it?

Alternatively, if it was in an RRSP, there wouldn't be any withholding taxes taken out, correct?

 

[leslie]

I'll bow to anyone that actually knows the answer ..but a good working presumption would be that none of the tax benefits for US owners will apply to us. The distributions will be received as 'interest income' that is fully taxable and a 15% tax will be withheld. If owned within a tax-sheltered acct you receive the full amount w/out any withholdings.

 

[DuckConference]

I'll bow to anyone that actually knows the answer ..but a good working presumption would be that none of the tax benefits for US owners will apply to us. The distributions will be received as 'interest income' that is fully taxable and a 15% tax will be withheld. If owned within a tax-sheltered acct you receive the full amount w/out any withholdings.

Yeah, my plan to just assume it's at my full marginal rate, since that should be the worse case. I was just cautious about some weird corner case causing me to be liable for taxes on things over and above the distributions (and capital gains if sold).