Foreign Taxes

[Jilliandiz]

Do foreign taxes get reported under expenses or earnings when filing the Schedule I?

[JanetM]

I would include them with fees as they are cost of running the plan.

[wsp]

I used to run them through as Janet had said; showing them as a fee (expense). But, the dreaded auditors on an account didn't like it that they couldn't match the dividends I was showing with those being shown on the brokerage statements (broker netted the expense against dividends). They continued to complain even after I provided them with the expense shown as it's own line item on the income statement. So, I gave up and netted them against the earnings.

So, either way works fine as no one really cared either way except the auditor.

[Guest b2kates]

I agree, but what type of investment is triggering foreign taxes?

[A Shot in the Dark]

b2kates:

Some of the more agressive International Mutual Funds generate foreign taxes. Growth Funds, Emerging Market Funds, etc.

[wsp]

b2kates:

Some of the more agressive International Mutual Funds generate foreign taxes. Growth Funds, Emerging Market Funds, etc.

It's a tax on the dividends. So any of the above plus foreign stocks. Another motive for netting them with the dividends is that on occasion a portion of the dividend is credited back to the account. Not sure why it is in some cases but not in others. But that credit is also netted against dividends on the brokers statements.