[guyem]

Hello, Like you at the time I was faced with this problem and therefore questioned IBKR on the subject, the answer was very simple: "don't forget that you can use options" and there I immediately realized that it was enough to sell puts an hour or two before the weekly or monthly liquidation in order to be assigned and enter the securities into the portfolio,,, You can of course sell whenever you want,,,,, of course you have to know how options work, it is preferable but not insurmountable at all

[guyem]

Being a bit "pissed off" with Boursorama about the request for exemption from advance payment on dividends (which I made and which was not applied by Bourso,,,,,,,), I directly contacted the management of the CDI on which I depend and I received the following explanation concerning the tax treatment of dividends for a French resident (some additional details can be found in the 2047)

Dividends generated by investments in the capital of companies constitute taxable income, regardless of whether the companies are French or foreign.
Article 9 of the 2013 Finance Act No. 2012-1509 removed the flat-rate withholding tax for dividends received from January 1, 2013 and the annual fixed deduction for those received from January 1, 2012.
All dividends are now compulsorily taxed according to the progressive income tax scale,
Furthermore, they are subject to a compulsory withholding tax at the rate of 21 %.
This non-liberatory deduction of income tax is chargeable in the form of a tax credit on the amount of tax due after application of the progressive income tax scale.
However, it is possible to be exempted from this, on request, if the reference tax income for the previous year does not exceed a certain ceiling,
1 – Taxation on a progressive scale
These incomes are declared for the amount received, i.e. after deduction of any collection costs (various costs declared in box 2CA)
They are taxable according to the progressive IR scale, according to 2 possible methods:
– With deductions
– Without deductions
a – income eligible for the 40% deduction
This applies to dividends from shares and income from shares distributed by companies subject to corporation tax or an equivalent tax (or subject to this tax by option) having their registered office in France, in a State of the European Community or in a State or territory having concluded a convention with France for the avoidance of double taxation, provided that, since 1.1.2009, the said convention contains an administrative assistance clause for the purpose of combating tax fraud or evasion. These distributions must result from a regular decision of the competent bodies of the company.
b – income excluded from the 40% deduction: taxation on the first euro

The 40 % reduction does not apply to amounts paid in addition to dividends, which are presumed to be distributed income.

The following income is targeted:
– Products distributed by certain companies (investment companies whose activity is the management of securities portfolios, investment companies with a predominance of variable capital SPPICAV, listed real estate investment companies SIIC)
– Distributed products not resulting from a regular decision
(Profits deemed disinvested, distributions not taken from profits, increases in profits, hidden distributions and remuneration, lavish expenses, indirect or disguised distributions, advances, loans or deposits from partners, attendance fees)
These incomes are subject to the tax scale from the first euro.
Only possible deduction: financial charges paid during the year
Income from foreign structures subject to a privileged tax regime (article 123 of the CGI) is also taxable, whether or not there is distribution.
2 – The compulsory withholding tax of 21%

a) compulsory but no longer liberating levy
The compulsory levy applies to the gross amount of income received, without deduction of costs,
It is liquidated by the paying institution on the dividends to be paid, at the same time as the social security contributions.
It is deducted from the income tax of the following year, in the form of a tax credit,
Any excess is returned.

example: the compulsory deduction incurred in 2013 will be charged on the tax to be paid in 2014 on 2013 income

(b) exemption from income-based levy
Individuals belonging to a tax household whose reference tax income for the penultimate year is less than €50,000 (single, divorced or widowed taxpayers) or €75,000 (taxpayers subject to joint taxation) may request to be exempted from the levy.

In accordance with article 242 quater of the CGI, the request for exemption must be made, under the responsibility of the taxpayer, before November 30 of the year preceding that of payment to the paying establishment (which is in turn required to produce it upon request from the administration.
It takes the form of a sworn statement by which the taxpayer states that his reference tax income N-2 meets the conditions cited above.
This certificate must be produced to the persons responsible for paying the income.
Exceptionally for 2013, the request could be made until March 31.
For dividends and interest collected in 2014, the request for exemption from withholding tax had to be made before November 30, 2013 to the paying institution.

(c) withholding tax
Income received by individuals domiciled in France is subject to income tax. Value = gross value in euros based on the rate on the day of payment, after deduction only of tax paid abroad.
Impact of international conventions: most conventions avoid double taxation and provide for the imputation of foreign tax on French tax, or a reduction in its place.
Some agreements provide for the reimbursement of tax collected at source. In the absence of an agreement, no imputation but taxable base = base net of tax already paid. Income received abroad must be declared on form 2047.

good reading

[guyem]

with pleasure

[guyem]

Hello Jerome,
As far as I'm concerned, no problem with IB, there is support in French with a free number that I didn't need when opening, I was then contacted by phone by a person who is trying to determine the level of knowledge for using the options, and by email for the origin
funds….
I almost forgot ,,,, https://www.youtube.com/watch?v=l60LC22DXPY ,,, there is even a video on you tube by delacretaz, a tutorial in short, for opening an account.
For trading, if interested, the best is to contact Paul Marcel from Celtinvest, he has a thorough command

[guyem]

I haven't gone through the IB documents yet, but I did take a look at the Tradestations,,,,
I actually filled out the W-8BEN when I opened the account.
Well at the moment on this account, I have a CYS line whose div. were taxed at 15% and a kmp line whose div. were taxed at 35 %
KMp being an MLPs master limited partnership
the document reporting this is: form 1042-S ,,,,
It is up to me to include it in my France 2042 declaration in order to avoid double taxation given the France-US tax treaty,,,,,,
In my opinion, the fact that the account is in the US or elsewhere matters little (apart from the fact that French law requires that foreign accounts be declared). What matters is the country where the dividends were taxed first and the country of residence of the declarant, as well as of course the existence or not of a tax treaty between the two,,,,,,,

that said there is a good post on the site regarding the taxation of divs

[guyem]

I have had (among others,,,) an interactive brokers account and a tradestation account for about a year,,,,
As for IB, I am satisfied, even if we can always criticize... when opening the account, I made a transfer to Citigroup
Germany but apparently the account is domiciled IB UK, to be verified because we are entering the declaration period (I am a French resident)
I opened these two accounts because I use the options from time to time,,,,,
I almost opened an account with Swissquote for reasons of legal security of the securities deposited (a priori in Switzerland the securities are the property of the depositor and not of the bank, as a priori is the case in France) I found little information,,,,,
" ...
So, the sentence above appeals to me, given the current situation the legal aspects will unfortunately become more important,,,

Well, if I can give you more specific information about IB, it will be with pleasure.

[guyem]

Ok, thank you for your reply and your e-mail! I'd like to take this opportunity to ask you for a little technical clarification on the ex-us dividend strategy. I notice that there's no column for the number of years of increasing dividends.

( you can always take a look at google fin to get an idea )

[guyem]

I notice that the tendency is to ask the opinion of the population while denigrating its capacity to respond ,,,, in short a certain category of the population considers itself as having a superior capacity for judgment compared to the rest of the population ,,,

It would seem, however, that a democracy is defined by the acceptance of the individual to decide for/by himself,

For my part, I had submitted an immigration file (finally accepted) for Quebec a little over ten years ago: I can tell you that if you do not have: good health, the right age, the right profession, the right wallet, the right diploma, etc. you will not set foot there,,,,,

In short, there are borders or there aren't, if there are, it can be managed like the rest, if we are capable of it...

the influx of population allows to put pressure on wages ,,,,,,,

In the general media, there is a word that comes up more and more: corruption... the only remedy will be the rise of

French Treasury borrowing rates on the markets, there they will be forced to launch a cleaning operation (Marc Faber spoke about it some time ago,,,,,,,)

[guyem]

Thank you for your reply , I took advantage of the last leg of the rise and cut the line about 2 weeks ago, approximately how often do you run your algorithm?

 

 

 

 

 

 

 

 

 

 

……

 

[guyem]

Hello everyone & best wishes ,,,

I just took a look at the ex us div strategy to put it in the list and just noticed that ZURN has gone from

5* to 3*,,, can Jerome tell me what caused this drop in the rating??

[guyem]

Hello everyone ,

I'm digressing a bit from the subject but anyway,,,, I would like to know if some of you, being French residents, have opened accounts with Swissquote and made significant transfers (say in the 2-300k) this is what I intend to do for reasons of legal ownership of the securities and I wonder if the tax authorities are putting up any hassle,,,,

for the moment I have accounts with bourso, IB, Tradestation (the last two to be able to use the options)

 

[guyem]

Hello ,

I am starting to buy some dividend-oriented lines and ideally, we always want to position ourselves at the bottom of an ascending channel, but there are the unexpected events of more or less violent paths.... As far as I am concerned, I use a protective put at around 10 % below the entry point for a few months.... We avoid the problem of triggering stops... Then I try to reimburse the premium as much as possible by selling calls (there are other ways) 

If anyone uses the options here, I think it would be interesting to discuss it… 😉

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