will tradng Slumberger (SLB) trigger foriegn taxes?

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Figuring_it_out
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will tradng Slumberger (SLB) trigger foriegn taxes?

Post by Figuring_it_out » Thu Oct 17, 2019 6:42 am

I have some play money and I want to trade SLB. My family is a long time oilpatch group so i understand the chaos of oil price volitility and its impact on the service providers. This is strictly non-bogle approved speculative trading so no beatings please.

Im curious if i trade and generate profits, with SLB being a french company, does that mean i have to deal with foriegn tax?

They have heaquarters in Paris and Houston. Not sure if that makes a difference.

an_asker
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by an_asker » Thu Oct 17, 2019 7:12 am

No. The single act of trading won't trigger foreign taxes; however - I hope you have been noticing - if SLB (or any other ADR stock) throws off dividends, those are subject to foreign tax withholding and your broker should provide that information with your 1099.

Topic Author
Figuring_it_out
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by Figuring_it_out » Sat Oct 19, 2019 10:47 am

Anyone own SLB stock and get dividends and had to deal with foreign taxes?

How difficult are foreign taxes on dividends to deal with?

Dontridetheindexdown
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by Dontridetheindexdown » Sat Oct 19, 2019 11:17 am

Foreign tax credit for dividend withholding is a trivial accounting task.

It requires just 1 more form on Turbotax, with no additional cost.

We hold Royal Dutch Shell (Netherlands withholding) and formerly held Total (France withholding).

One caveat, your foreign tax credit is prorated, by our IRS, such that the credit for foreign tax withheld on foreign earnings is limited to the percent of tax you pay on your U.S. earnings.

In our situation, it limits the foreign tax credit by a few dollars, but still an excellent deal.

Having said that, are you not aware that Schlumberger is based in Houston?

Schlumberger dividends are not subject to foreign withholding because they are not foreign.

Topic Author
Figuring_it_out
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by Figuring_it_out » Sat Oct 19, 2019 12:23 pm

I'm trying to get a definitive answer on if that home base is Houston or Paris. if googled till my eyes are crossed and cant find an answer. maybe because it is a non-issue?

So IF there is a foreign tax how does that work? If the dividend is supposed to be $10 to me and France withholds 25%, then I only get $7.5 today and then get a foreign tax credit for $2.50 when I file US taxes next year? No France taxes to file?

My tax situation is very straightforward. just W2 income and plain vanilla investments. No businesses or rentals. Dont want to complicate my tax situation too much.

DetroitRick
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by DetroitRick » Sat Oct 19, 2019 4:43 pm

I've held Schlumberger for years, and coincidentally, worked for them years ago. If you are trading under the symbol SLB, this definitely is not an ADR. Assuming, of course, that you are US taxpayer and trading this exact symbol - SLB.

Trading this security won't generate foreign gains/losses, nor will dividends be subject to foreign withholding. Plus these dividends have also been fully qualified for as long as I've seen (since 2006). You can verify that it is not an ADR by looking at either your broker's website (Schwab for me), or your trading platform. And any broker will easily verify this if you are still unsure. Plus their 10-K filing on the SEC's Edgar database.

Schlumberger NV itself is incorporated in Curacao with principal offices in 4 locations: Houston, TX - London, UK - Paris, France and The Hague, The Netherlands. They are registered on 4 exchanges at the moment - NYSE, Euronext Paris, The London Stock Exchange, and SIX Swiss Exchange. Per SEC and their annual report.

Best of luck :sharebeer

Edited to add - besides, foreign withholdings on dividends are easy enough to handle anyway. TurboTax, among others, easily accommodates. No worries, but it won't happen with this security.

Topic Author
Figuring_it_out
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Re: will tradng Slumberger (SLB) trigger foriegn taxes?

Post by Figuring_it_out » Sun Oct 20, 2019 9:00 pm

cool. Thanks!

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