tag:blogger.com,1999:blog-2986124651030959736.post4257508493901278101..comments2024-03-29T08:03:35.151-05:00Comments on Stocks, Bonds & Politics: Bought 100 XLU/Bought 100 QAI/SOLD AUY/Unemployment and Inflation/Bought 30 ZBPRC at 18.4/TENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2986124651030959736.post-41782379178613259542009-11-20T11:34:43.601-06:002009-11-20T11:34:43.601-06:00In the U.S., I can receive a credit against my U.S...In the U.S., I can receive a credit against my U.S. tax obligation for the amount of foreign taxes paid. You may want to check to see if your government does something similar for the U.S. taxes that you have to pay on dividends and interest.<br /><br />I do remember from long ago that the brokerage company that I used handled what could be retrieved by tax treaty without me having to ask. That situation has not come up in over a decade for me. You may want to make an inquiry to the broker that you use for U.S. trades.<br /><br />The U.S. Internal Revenue Code may be the most complex document ever written in the annals of human history. I am sure that is. I have not checked the page count in years but feel comfortable in saying well in excess of 10,000 pages and adding a 1000 or so pages most years. In fact, I would venture a guess that, if it was simplified to something like a flat tax, the unemployment rate in the U.S. would rise initially by 1% as hundreds of thousands of citizens would lose their livelihood interpreting and applying the tax code in its current form.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-4998223933639424582009-11-20T10:17:51.737-06:002009-11-20T10:17:51.737-06:00Thanks for the compliment on my English skill. I a...Thanks for the compliment on my English skill. I attribute it to watching American movies, TV shows and the Dutch education system that is focused on international trade (as there is a limit on how much trade there can be done domestically) and thus foreign languages.<br /><br />I've been busy with the American dividend taxes too. As far as I know I can get at least some of the withheld money back on account of a tax treaty between our two countries. I'm not sure how yet.<br /><br />I must say that I find the Dutch dividend tax system more simple and transparent. Dividend gets taxed at a 15% fixed rate. There are no marginal tax brackets. Debt (together with all other assets minus liabilities, with an exemption on the first 20k) is taxed at a fixed 1,2% rate (30% tax on an imaginary return of 4%), no matter how high the actual yield is. This obviously has the downside that you cannot get a tax deduction on account of your losses. The big upside is that you pay less taxes if you are yielding more.Unknownhttps://www.blogger.com/profile/12601016454795781188noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-9653917468225625682009-11-20T08:29:53.666-06:002009-11-20T08:29:53.666-06:00You are correct. I will change the yield to 12.9%...You are correct. I will change the yield to 12.9% in the post. I most have done the calculation in my head or hit the wrong button on the calculator on my desktop. Thank you for pointing the error out to me. <br /><br />ZBPRC is pure equity. It is not like your European hybrids. It is in parity with the government's preferred stock that Zions issued for TARP funds. I discussed this parity issue in Item # 7 in this blog: http://tennesseeindependent.blogspot.com/<br />2009/09/sold-100-fbfprn-at-1738bought-50-zbprb.html<br /><br />This kind of security is favorably taxed for a U.S. citizen, subject currently to a maximum 15% tax rate whereas interest from a bond would be taxed at the marginal rate which tops out now at 35%. <br /><br />Another Zions' security is more like the European hybrids, ZBPRB, and it ranks senior to the equity preferred stocks. It is a hybrid in the sense that it can be included in capital for regulatory purposes, but it is in effect a junior bond that pays interest. <br /><br />Your English is very good.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-596275861146141462009-11-20T05:45:18.748-06:002009-11-20T05:45:18.748-06:00Your ZBPRC yield calculation doesn't seem righ...Your ZBPRC yield calculation doesn't seem right. I didn't check out the prospectus so I might be missing something but I get a different result:<br /><br />$25 * 0.095 = $2.375 per year<br />$2.375 / $18.4 * 100 = 12,9% yieldUnknownhttps://www.blogger.com/profile/12601016454795781188noreply@blogger.com