Q: Dear 5i
I`m sure i`ve asked this question before but i cannot find your answer to this question .
Do you have to include ETF's that are Canadian listed that hold US stocks such as HXS and ZSP as part of my foreign reporting re foreign assets on my taxes ?
Also i have 3 ETF's that apparently have Trust or Partnership income (ZLB,CDZ,ZSP ). I have not received this notification before from my brokerage firm so i'm assuming this is a relatively new structuring of these particular ETF's . That said , is trust and partnership income taxed more or less than other forms of income ? Are you taxed on this income derived from capital gains , dividend or interest income ?
Thanks
Bill C
I`m sure i`ve asked this question before but i cannot find your answer to this question .
Do you have to include ETF's that are Canadian listed that hold US stocks such as HXS and ZSP as part of my foreign reporting re foreign assets on my taxes ?
Also i have 3 ETF's that apparently have Trust or Partnership income (ZLB,CDZ,ZSP ). I have not received this notification before from my brokerage firm so i'm assuming this is a relatively new structuring of these particular ETF's . That said , is trust and partnership income taxed more or less than other forms of income ? Are you taxed on this income derived from capital gains , dividend or interest income ?
Thanks
Bill C
5i Research Answer:
The US added some new partnership taxes in 2023. They are not applicable unless the LP has operating businesses in the US, but if so there can be large withholding taxes and 10% dispostion taxes (10% of proceeds, not gains). For the ETFs listed, ZSP has the potential to have a minor impact from this, but the S&P 500 (the index it follows) does not own material exposure to trusts/LPs so we would not consider this problematic in any way. But all ETFs will have a mix of different taxation, and this will vary each year. The tax breakdown of each can be found on their websites. In terms of foreign reporting, if an ETF is listed in Canada it does not have to be reported.