The 15% withholding tax is only applied to the U.S. dividends portion of the distribution (not the whole distribution) and is refunded in your Canadian tax return as the foreign tax credit when you own the fund in a non-registered account. The amount of withholding tax is specified in box 34 of your T3 slip which your Canadian brokerage will issue to you (since they are the ones who actually withhold the tax and forward it to the IRS). The TFSA is the worst type of account to own dividend paying U.S. funds
@@dkyrtata6688 please elaborate more please 🙏🏼 I totally understand your comment but if I withdraw an income of $80,000/year from my RRSP/RRIF won’t I pay more tax than the 15% I payed initially on the dividends into my TFSA? Thanks!!
No it’s against the entire distribution, including return of capital. People holding this anywhere either than a RRSP are donating their capital to the IRS😂
@@thehybridinvestorBox 34 (tax paid) of my T3 slips suggest otherwise. Moreover Box 25 (Foreign income) represents the U.S. dividend. When the tax-paid is subtracted from the dividend (Box 25 minus Box 34), the result equals to the distribution amount. When the boxes for capital gain and ROC are filled in, Box 34 does not increase; only the total distribution amount increases by the same amount. If I applied 15% to the entire distribution amount, I would get a much higher number for Box 34 than what is there now. Here is one example of a $1401.40 distribution received for a mutual fund I held in 2023. The T3 slip reads as follows: Box21(capital gain)=$1012.13; Box49(Canadian dividend)=$379.27; Box25(Foreign income)=$11.76; Box34(Foreign Tax)=$1.76. If you add all the amounts and subtract the tax , your get the amount of the distribution of $1401.40 Please provide your source of where you get your information from.
This month (9/19) YMAX (You covered on last video) dividend is only 22.7c for 5 weeks cut by about 61% from august & YMAG div is 19.79c cut by 65% for last 5 weeks. Volatility for last 2 months is about the same. Why do you think Yieldmax Etfs dividend derivative income is down so much this month even volatility is about same as august? Thanks.
@@PassiveIncomeInvesting I understand they went weekly. For the last 5 weeks, YMAX & YMAG are not paying any $. I was expecting similar to last month dividend on 9/19 and less dividend from 9/26. I am surprised they start cutting from 9/19.If you know any other reason, Please let me know Thanks.
i hold in Non Reg . i pay 15 % flat tax on canadian or US holdings being a non resident .. the only difference is that i do get a refund on the canadian funds the following year
Good video. I wish you could use your influence to get Roundhill to change their dividend payouts of QDTE , XDTE and RDTE to different day of the week so RDTE could pay on say a Monday, QDTE could pay on a Tuesday and XDTE could pay on a Wednesday.
What benefit would that provide? It would seem that it would be extra overhead for the fund company to mange it. Plus most investors would not notice the payment pattern since they are not likely to own all the funds you listed. And when there are only 5 days in the week, what happens when the company offers 40 different funds? Which ones are assigned to Monday? What if you own 3 Monday funds and 2 Tuesday funds?
HYLD is probably your best bet. But Adrian is mistaken. You get back the withholding tax in a non-reg account because it is specified in Box 34 of your T3 slip for which your tax program will apply it towards the foreign tax credit. Usually you will get 100% of it back but I have gotten as little as 75%. It depends on what else is going on in your tax return. I think in one case I was declaring medical expenses which reduced my foreign tax credit by the same mount!
The 15% withholding tax is only applied to the U.S. dividends portion of the distribution (not the whole distribution) and is refunded in your Canadian tax return as the foreign tax credit when you own the fund in a non-registered account. The amount of withholding tax is specified in box 34 of your T3 slip which your Canadian brokerage will issue to you (since they are the ones who actually withhold the tax and forward it to the IRS).
The TFSA is the worst type of account to own dividend paying U.S. funds
@@dkyrtata6688 please elaborate more please 🙏🏼
I totally understand your comment but if I withdraw an income of $80,000/year from my RRSP/RRIF won’t I pay more tax than the 15% I payed initially on the dividends into my TFSA?
Thanks!!
Huh didn’t know that about the 15% with holding tax …
No it’s against the entire distribution, including return of capital. People holding this anywhere either than a RRSP are donating their capital to the IRS😂
@@thehybridinvestorBox 34 (tax paid) of my T3 slips suggest otherwise. Moreover Box 25 (Foreign income) represents the U.S. dividend.
When the tax-paid is subtracted from the dividend (Box 25 minus Box 34), the result equals to the distribution amount. When the boxes for capital gain and ROC are filled in, Box 34 does not increase; only the total distribution amount increases by the same amount.
If I applied 15% to the entire distribution amount, I would get a much higher number for Box 34 than what is there now.
Here is one example of a $1401.40 distribution received for a mutual fund I held in 2023. The T3 slip reads as follows: Box21(capital gain)=$1012.13; Box49(Canadian dividend)=$379.27; Box25(Foreign income)=$11.76; Box34(Foreign Tax)=$1.76. If you add all the amounts and subtract the tax , your get the amount of the distribution of $1401.40
Please provide your source of where you get your information from.
@@dkyrtata6688 Looking at Wealthsimple withholding tax subtraction in the activity log. It’s the full 15% regardless of the makeup of the distribution
What about the FHSA account? Would it be okay to put it in there?
What did you think about XDTE having a larger distribution then QDTE this week?
it could happen i guess. but i dont think its the norm. i think its a waste of time and energy thinking about stuff like this
Do you plan to add rdte to your accounts along with the xdte you went in big recently? Also, why svol? thx for the updates!
This month (9/19) YMAX (You covered on last video) dividend is only 22.7c for 5 weeks cut by about 61% from august & YMAG div is 19.79c cut by 65% for last 5 weeks. Volatility for last 2 months is about the same. Why do you think Yieldmax Etfs dividend derivative income is down so much this month even volatility is about same as august? Thanks.
there's no cut, they went to weekly payouts
@@PassiveIncomeInvesting I understand they went weekly. For the last 5 weeks, YMAX & YMAG are not paying any $. I was expecting similar to last month dividend on 9/19 and less dividend from 9/26. I am surprised they start cutting from 9/19.If you know any other reason, Please let me know Thanks.
thank you
Hey Adrian, How are you liking the move from the apartment condo to the house ?
pros and cons! but liking it so far especially the quiet
Does rdte pay weekly?
Yes
Nice - I'm waiting for IWMT = Defiance R2000 Income Target ETF ( Target 20% ) to become available. Any news on when it might come out?
not yet, check out sundays video my friend
@@PassiveIncomeInvesting I knew you would be on top of that one !
😊
any information if Defiances (QQQY, IWMY, JEPY) will go for weekly distribution in near future? since YMAG and YMAX already announced it.
They have gone weekly 👍
yes they will, i suggest you watch Sundays video
@@PassiveIncomeInvesting will do
i hold in Non Reg . i pay 15 % flat tax on canadian or US holdings being a non resident .. the only difference is that i do get a refund on the canadian funds the following year
Where Yang high yield ETFs at ?
Good video. I wish you could use your influence to get Roundhill to change their dividend payouts of QDTE , XDTE and RDTE to different day of the week so RDTE could pay on say a Monday, QDTE could pay on a Tuesday and XDTE could pay on a Wednesday.
Stop. It doesn’t matter when you’ll get your two cents.
lol how spoiled we have become
@@PassiveIncomeInvesting We have but we have also become well educated about the effects of compounding lol
What benefit would that provide? It would seem that it would be extra overhead for the fund company to mange it. Plus most investors would not notice the payment pattern since they are not likely to own all the funds you listed. And when there are only 5 days in the week, what happens when the company offers 40 different funds? Which ones are assigned to Monday? What if you own 3 Monday funds and 2 Tuesday funds?
If you want different day weekly dividend payouts then I suggest you add YMAX & YMAG in your portfolio.
Can you give me financial advice? What should I buy
Research
only you can figure that out .
I have $10k in RDTE, we'll see how it goes
it will go however the R2000 goes
Name one Canadian equivalent to the yields of the US etfs to offset the 15% withholding tax in a non-reg account.
agreed - which CDN ETF can come close to the roundhill etf's? I haven't found one.
HYLD is probably your best bet. But Adrian is mistaken. You get back the withholding tax in a non-reg account because it is specified in Box 34 of your T3 slip for which your tax program will apply it towards the foreign tax credit.
Usually you will get 100% of it back but I have gotten as little as 75%. It depends on what else is going on in your tax return. I think in one case I was declaring medical expenses which reduced my foreign tax credit by the same mount!
@@dkyrtata6688 I'm currently holding qdte / xdte in RESP and TFSA accounts...I imagine that won't apply :/
LBS is a high dividend payer that has a fairly stable nav. LBS is based on banking and life insurance. Has about a 15% dividend.
there is no yield equivalent but in terms of total returns, there are many. YIELD does not equal RETURNS
Dude should I am heavily invested in USCL. Should I be worried if the Democrats win in November? How would that affect us?
lol stop
@@PassiveIncomeInvesting 🤣🤣🤣🤣thanks dude. You made me feel better. I do worry