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Withholding Tax

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Posted by Daniel on August 11, 2005 at 17:44:44:

As a Canadian resident, my broker is required to withhold 15% tax from dividend payments for my US stocks, per IRS requirements. If my stock pays $60 in dividends, I only receive $51 in my brokerage account, so I need to make some sort of adjustment to avoid my cash account being out of kilter.

What is the best way to handle this in FM when using a cash account? Should I set up a second cash account to track the tax being withheld? Treat the tax as an account fee? Manually adjust my original cash account some other way?


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