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[OP]
Sr. Member
May 2, 2010
505 posts
372 upvotes
GTA

Schedule K-1

I own Brokkfield company (BPY) in my TFSA. I received a tax package called "Partner's Share of Income, Deductions, Credits which includes a Schedule K-1 (Form 1065). I'm completely lost. BPY is a Canadian company so why am I receiving this? And also, what exactly am I supposed to do with this? It's not clear. Anyone know?
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Mar 25, 2012
1865 posts
1052 upvotes
Kelowna
Cartman86 wrote: I own Brokkfield company (BPY) in my TFSA. I received a tax package called "Partner's Share of Income, Deductions, Credits which includes a Schedule K-1 (Form 1065). I'm completely lost. BPY is a Canadian company so why am I receiving this? And also, what exactly am I supposed to do with this? It's not clear. Anyone know?
Stopped reading after TFSA. It's in your TFSA. No tax is payable on the one hand, and, on the other hand, you can't use any credits and you may be subject to an unrecoverable foreign withholding tax.

The fact a company is listed on the TSX doesn't matter. What matters is their source of earnings. I own TSX-listed, B.C.-incorporated American Hotel Income Properties REIT (TSX: HOT.UN) in my TFSA, which derives all of its income from its 200-250+ hotel properties it solely owns in the U.S. So, there's a foreign withholding tax that I can't recover because it's in my TFSA. Not sure why you received the package, unless you own BPY.UN in another, non-registered account).

Cheers,
Doug

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