Comments on: Michael’s Pick-of-the-Month - January 2006 (speculators only) http://www.bushinvestments.com/blog/2006/01/04/pick-of-the-month/ The perpetual quest for knowledge, wealth, and great people happens here! Tue, 06 Jan 2009 07:09:32 +0000 http://wordpress.org/?v=2.0 by: Michael http://www.bushinvestments.com/blog/2006/01/04/pick-of-the-month/#comment-13 Mon, 06 Feb 2006 22:17:01 +0000 http://www.bushinvestments.com/blog/2006/01/04/pick-of-the-month/#comment-13 David - This is a good question. I'll start out with the disclaimer that I'm not a tax professional, so it's important for you and others to seek professional guidance. I believe that the distributions of dividends are taxed at the appropriate dividend tax rate, but there could be additional taxes that the Trust incurs. It's even possible that the Trust distributes the tax liability to all of the share holders similar to a Partnership. I'm simply not sure. I have read that there are some strong tax breaks for US royalty trusts, though it was only on a message board somewhere. I'd love to hear more authoritative information on this topic. Cheers, MB David -
This is a good question. I’ll start out with the disclaimer that I’m not a tax professional, so it’s important for you and others to seek professional guidance.

I believe that the distributions of dividends are taxed at the appropriate dividend tax rate, but there could be additional taxes that the Trust incurs. It’s even possible that the Trust distributes the tax liability to all of the share holders similar to a Partnership. I’m simply not sure.

I have read that there are some strong tax breaks for US royalty trusts, though it was only on a message board somewhere.

I’d love to hear more authoritative information on this topic.

Cheers,

MB

]]> by: David Bush http://www.bushinvestments.com/blog/2006/01/04/pick-of-the-month/#comment-9 Sun, 08 Jan 2006 02:45:03 +0000 http://www.bushinvestments.com/blog/2006/01/04/pick-of-the-month/#comment-9 How is something like a royalty trust taxed in a taxable investment account? Does one pay taxes on royalties as income at their current rate of taxation? What other implications are there, if any, as opposed to going out and buying shares of GE? Thanks. How is something like a royalty trust taxed in a taxable investment account? Does one pay taxes on royalties as income at their current rate of taxation? What other implications are there, if any, as opposed to going out and buying shares of GE? Thanks.

]]>