Originally Posted by hogtied
You posted once that your PID ETF was in an IRA and you might be missing foreign tax credits. If the foreign tax credits were a "big deal" on your 2007 1099's you thought perhaps you would move them to a taxable account. What did you end up doing? Thanks.
I don't mean to be flippant, but I ended up not worrying about it.
Since our PID shares are all in our IRAs, Fidelity didn't even bother reporting how much foreign tax was paid. I'd probably have to dig into PowerShares' annual report to figure it out.
When we were dealing with foreign tax in our Tweedy, Browne shares (in taxable accounts), it wasn't a big deal. I think that was because Tweedy's turnover was pretty low (15% or less). Being based on an index, PID may have similar low turnover. It probably cost more of my time to deal with TurboTax's questions & forms than it was worth.
IMO PID's biggest advantage is that dividends are one of the few ways to assess a foreign company's financial health. If that means we're getting dinged on foreign tax then it's worth it.