We are looking at a foreign stock that is on the American Depositary Receipt. Has anyone invested in a foreign stock that is on this trading platform and, if so, has it caused problems when you do your taxes for the year?

Zeta
Keystone Investment Partners

Hi,

We’ve invested in two large companies that with ADRs that are both traded on major US exchanges and are in the Bivio price database - Alibaba and Unilever. Bivio does caution that there could be tax complications if the foreign companies go through restructuring. For that reason we’ve tried to stick to really big companies in the hopes that, if they do restructure- there will be lots of US shareholders to put more pressure on them to provide the necessary info for US taxes. So far we’ve not had any problems but we are aware that we are taking some risk.



Sent from my iPhone

> On Feb 20, 2020, at 1:58 PM, Zeta Creed via bivio.com <user*37534300001@bivio.com> wrote:
>
> We are looking at a foreign stock that is on the American Depositary Receipt. Has anyone invested in a foreign stock that is on this trading platform and, if so, has it caused problems when you do your taxes for the year?
>
> Zeta
> Keystone Investment Partners

We have invested in companies trading as ADRs without issue.
If the company issues a dividend, you may have to deal with
foreign tax credits, but that has not been a problem. Also,
recently brokers have stopped eating the extra expense of
ADRs and have started charging a small fee semi-annually or
annually for each company holding.

Jack Ranby