In the latest issue of Big Yield Hunting, which we published after the market’s close on Friday, Aug. 23, we wrongly asserted that Canadian REITs held within a US investor’s IRA are exempt from the Canadian government’s withholding tax of 15 percent. We apologize for the error.

In fact, that exemption only applies to IRA holdings that are Canadian corporations, not Canadian REITs. So the Canadian government does indeed withhold 15 percent of a REIT’s distribution when it’s held in a US investor’s IRA. Furthermore, unlike when Canadian REITs are held within a US investor’s taxable account, the amount withheld by the Canadian government from a REIT in an IRA cannot be recaptured via a tax credit from the IRS.

Of course, it should be noted that we’re not tax professionals and, therefore, you should consult your tax advisor or accountant for clarification regarding how taxation of any securities we recommend will affect your particular situation.

We’ve appended a correction to the issue posted at our website, but since most subscribers are accustomed to receiving our full editorial content via email, we thought it prudent to issue this correction via email as well.