Buying on US OTC versus Canadian TSX
Buying on US OTC versus Canadian TSX
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External question — Personal Finance Stack Exchange
Author: CNM
Original post: https://money.stackexchange.com/questions/140226
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
As a US citizen, is it better to buy an equity that is cross-listed both on the US OTC Exchange as an ADR, or to purchase it from an online broker that has access to the Toronto Exchange TSX or even TSXV? I'm not talking about penny stocks. However I know that there is a certain layer of safety if you purchase on a US Exchange since they are regulated by our SEC, and companies listed have to make filings and ostensibly comply with regulations.
However, previously when I invested in ADRs, the Canadian government had already withheld and taxed profits listed on my annual 1099 B from my US stockbroker. So when I was doing my tax return schedule D, it was a lot of rigmarole to get these monies refunded that I ended up just leaving about $200 and walking away. Also too much time and energy to write off as an investment loss. And considering overall picture of tax ramifications for my portfolio — both long and short-term capital gains etc. this was a deterrent to investing in precious metals and mineral companies that were/are incorporated in Canada as the majority of them are. This was about 10 years ago. Has anything changed?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: CNM Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/140226 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. As a US citizen, is it better to buy an equity that is cross-listed both on the US OTC Exchange as an ADR, or to purchase it from an online broker that has access to the Toronto Exchange TSX or even TSXV? I'm not talking about penny stocks. However I know that there is a certain layer of safety if you purchase on a US Exchange since they are regulated by our SEC, and companies listed have to make filings and ostensibly comply with regulations. However, previously when I invested in ADRs, the Canadian government had already withheld and taxed profits listed on my annual 1099 B from my US stockbroker. So when I was doing my tax return schedule D, it was a lot of rigmarole to get these monies refunded that I ended up just leaving about $200 and walking away. Also too much time and energy to write off as an investment loss. And considering overall picture of tax ramifications for my portfolio — both long and short-term capital gains etc. this was a deterrent to investing in precious metals and mineral companies that were/are incorporated in Canada as the majority of them are. This was about 10 years ago. Has anything changed?
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