Energy Prospectus

But, there is a threshold for "small" holdings. Married filing jointly are allowed a total of $50,000 worth of PFICs before having to file. Just found this tidbit a few days ago. This stuff is complicated.

In your due diligence, I suggest you consider that this Canadian company's revenue, as a royalty company, is basically passive under IRS rules. That means it is a Passive Foreign Investment Company (PFIC), which imposes substantial income tax filing efforts based on IRS Form 8621 and added taxes, un...

Keep in mind that the offering is by a shareholder fund, not by the company. This offering does not increase the number of shares outstanding or provide any money to the company.

I use HR Block, but I speculate that does not make a difference. The 1099s lump all dividends and other special treatments together, so you do not make separate entries for individual holdings, just the agglomerated numbers on each line of the broker's 1099 that has an entry.

A percentage is withheld (at the source) from the dividend payments to your broker and will be shown on the end-of-year 1099s. You may file IRS Form 1116, Foreign Tax Credit, for taxes withheld from taxable accounts. The tax software I use handles this easily. I do not know if you can get back any t...

They should withhold Canadian income taxes on the dividends. Don't rmember how much (flat 20%???). Your broker will report the withholdings to you, along with the gross dividends, so you can report both of them on your US Form 1040. Use Form 1116 for the withholding. Usually, you will get a 100% tax...

Dan, I just finished reading the December newsletter (edition No. 200 - - - - Wow!). It is excellent, as usual. I did note one oversight, though. In your writeup on Hemisphere in the Small Cap Portfolio, you did not mention that it pays a dividend of $0.10 CAD. That is 7.6 % of the $1.31 CAD closing...

$20 per GALLON, not $20 per barrel

<<Future SPR draws won't help much and can't keep going much longer anyway.>>
Besides, OPEC has signaled that they will reduce prodution to render them ineffective.

Copper prices on the futures market are quoted per pound.