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BPY.UN Dividend Help!!!

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  • Jul 6th, 2020 5:35 pm
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[OP]
Jr. Member
May 8, 2012
133 posts
84 upvotes
Edmonton, AB
JUnit wrote: Unless you're required to file US tax (maybe if you're a US citizen), it can go straight to the shredder/recycling AFAIK.
Thanks for the quick response
Deal Addict
May 28, 2007
1106 posts
408 upvotes
JUnit wrote: Unless you're required to file US tax (maybe if you're a US citizen), it can go straight to the shredder/recycling AFAIK.
Are the dividends subject to the 15% U.S. withholding tax as royaljatt eluded to? Whether received in Canadian or U.S. currency? If it is, can you avoid it by purchasing the shares in your RRSP?
Sr. Member
Jan 6, 2015
792 posts
215 upvotes
RCML27 wrote: Are the dividends subject to the 15% U.S. withholding tax as royaljatt eluded to? Whether received in Canadian or U.S. currency? If it is, can you avoid it by purchasing the shares in your RRSP?
I do not think you will pay 15% tax if you are Canadian resident. For currency, you probably can choose either one, I put stock in CAD side, so I get CAD I think.
Sr. Member
Dec 28, 2007
999 posts
524 upvotes
RCML27 wrote: Are the dividends subject to the 15% U.S. withholding tax as royaljatt eluded to? Whether received in Canadian or U.S. currency? If it is, can you avoid it by purchasing the shares in your RRSP?
Part of the distribution is subject to US withholding tax, regardless of the currency of your account. You can see the distribution breakdown on BPY's website: https://www.bpy.brookfield.com/stock-an ... nformation

For the most recent (Q1) distribution: (from https://www.bpy.brookfield.com/~/media/ ... 1-2020.pdf )
Only $0.0013 of the $0.3325/unit is US-sourced dividends and would be subject to 15% withholding tax. (Note that the breakdown changes each quarter.) There would be no withholding tax on the US-sourced dividends if the units were held in a RRSP account.
If held in a taxable account, your broker would send you a T5013 tax slip, which you would then use to complete your taxes (and update the cost base in your records with the return of capital).
Sr. Member
Dec 28, 2007
999 posts
524 upvotes
reps001 wrote: I do not think you will pay 15% tax if you are Canadian resident. For currency, you probably can choose either one, I put stock in CAD side, so I get CAD I think.
If it's in a RRSP account, there is no withholding tax, otherwise there may be tax withheld. But as I posted above, this only applies to a small part of the total distribution (for Q1 at least).
The distribution is paid in USD; if you're receiving CAD, it is because your broker is converting it for you.
[OP]
Jr. Member
May 8, 2012
133 posts
84 upvotes
Edmonton, AB
can some one help me understand these lines

Trade Date Settle Date Description Action Quantity Price Commission Net Amount My Understanding
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU WHTX02 100 -0.03 Withholding tax
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DIVUS -100 0.17 USD Dividend
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INT -100 4.23 Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INTUS -100 7.49 USD Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU TXPDDV -100 32.75 ????
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DRIP 3 -37.2 DRIP of 3 shares

the reason I am confused is because I own 100 shares of BPY.UN and they paid dividend of $0.3325 USD per share which would have converted at roughly 1.40 fx = 46.55 and I should have gotten 2 drip share at most not 3
TDDI shows the average cost of those drip share as 23.76
Jr. Member
Nov 17, 2016
149 posts
92 upvotes
You paid about $12CAD per share. That was around the price this sold at when the dividend was paid out
Deal Addict
Feb 26, 2017
1681 posts
1757 upvotes
royaljatt wrote: can some one help me understand these lines

Trade Date Settle Date Description Action Quantity Price Commission Net Amount My Understanding
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU WHTX02 100 -0.03 Withholding tax
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DIVUS -100 0.17 USD Dividend
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INT -100 4.23 Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INTUS -100 7.49 USD Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU TXPDDV -100 32.75 ????
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DRIP 3 -37.2 DRIP of 3 shares

the reason I am confused is because I own 100 shares of BPY.UN and they paid dividend of $0.3325 USD per share which would have converted at roughly 1.40 fx = 46.55 and I should have gotten 2 drip share at most not 3
TDDI shows the average cost of those drip share as 23.76
23.76 is likely your average cost for all your shares. Your cost on your drip shares is 37.2/3 = 12.40 . I'm also with TDDI and that's the same price I paid for my shares.

The numbers actually looked wrong to me when I looked at them this morning but they added another line for ROC (probably return on capital).
[OP]
Jr. Member
May 8, 2012
133 posts
84 upvotes
Edmonton, AB
StevePos wrote: You paid about $12CAD per share. That was around the price this sold at when the dividend was paid out
this would make more sense since the Div Payable Date was Mar 31 and on that date the closing price was $11.91 (11.91*3 = 35.73)
from Div payout of ~ $46.55 - 35.73 = 10.82 and my account had roughly $7.41 as cash (~$3.41 must be TD commission for fx conversion)
Chance7652 wrote: 23.76 is likely your average cost for all your shares. Your cost on your drip shares is 37.2/3 = 12.40 . I'm also with TDDI and that's the same price I paid for my shares.

The numbers actually looked wrong to me when I looked at them this morning but they added another line for ROC (probably return on capital).
that is not possible because they paid USD $0.3325 div per share and I had 100 shares = $33.25 in USD alone
Deal Fanatic
Nov 24, 2013
6147 posts
2904 upvotes
Kingston, ON
royaljatt wrote: can some one help me understand these lines

Trade Date Settle Date Description Action Quantity Price Commission Net Amount My Understanding
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU WHTX02 100 -0.03 Withholding tax
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DIVUS -100 0.17 USD Dividend
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INT -100 4.23 Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU INTUS -100 7.49 USD Interest?
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU TXPDDV -100 32.75 ????
13-Apr-20 31-Mar-20 BROOKFIELD PPTY PTNRS LPU DRIP 3 -37.2 DRIP of 3 shares

the reason I am confused is because I own 100 shares of BPY.UN and they paid dividend of $0.3325 USD per share which would have converted at roughly 1.40 fx = 46.55 and I should have gotten 2 drip share at most not 3
TDDI shows the average cost of those drip share as 23.76
Brookfield actually shares good info of how their quarterly "dividends" break down between US Div, US Int, CA RoC (the big one), and CA Int:
https://bpy.brookfield.com/~/media/File ... 1-2020.pdf (20Q1 breakdown in USD)
https://bpy.brookfield.com/~/media/File ... -units.pdf (2019 full year in USD and converted to CAD)

At the end of the day, you got $44.61 CAD. $0.03 was US withholding tax, so before that it was $44.64. This means the FX rate used was 1.34255 (0.74484 inverse), which appears to be the FX rate at the record date of the distribution, February 28th. The conversion appears to be done before it's distributed, not being distributed as USD and then converted day-of-payment.
Newbie
Jun 6, 2007
50 posts
3 upvotes
Toronto
I might be late to the tread, but I have not seen this posted, so it might help those that owns BPY.UN (Canadian version, traded on TSX). Basically if you own BPY.UN in your CAD account, you don't have to worry about losing out on FX conversion because Brookfield will do the conversation based on Bank of Canada rate and pay you in CAD (the distribution is declared in USD but paid in CAD). So in OP's situation, there is no need to move BPY.UN to an USD account to save FX conversion fee.

Under one of the FAQs on Brookfield's website: https://bpy.brookfield.com/resources/faqs

In which currency are distributions paid?
The quarterly distributions on the LP units are declared in U.S. dollars. Registered unitholders residing in the United States shall receive quarterly cash distributions in U.S. dollars and registered unitholders not residing in the United States shall receive quarterly cash distributions in the Canadian dollar equivalent, based on the Bank of Canada exchange rate on the record date. Registered unitholders residing in the United States have the option, through Brookfield Property Partners’ transfer agent, AST Trust Company (Canada) ("AST"), to elect to receive quarterly cash distributions in the Canadian dollar equivalent and registered unitholders not residing in the United States have the option through AST to elect to receive quarterly cash distributions in U.S. dollars. Beneficial unitholders (i.e., those holding their units in street name with their brokerage) should contact the broker with whom their units are held to discuss their options regarding distribution currency.

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