Taxes on buyouts
So I had a large cash position one account and took a gamble and bought Time Warner shares at just under 93$ last month. Merger went through and pulled in a tidy 8+ percent.
After checking my account I noticed a non resident witholding tax taken out of my account. The amount was larger than the capital gain itself. I phoned TD and they said buyouts are treated as dividends and subject to withholding taxes on the entire amount.
Does this jive with anyone elses experience? I was certain this would be a capital gains scenario where no US tax applies.
After checking my account I noticed a non resident witholding tax taken out of my account. The amount was larger than the capital gain itself. I phoned TD and they said buyouts are treated as dividends and subject to withholding taxes on the entire amount.
Does this jive with anyone elses experience? I was certain this would be a capital gains scenario where no US tax applies.