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  5. DIR.UN: I need assistance deciding which of these stocks I should put in a regular acct and which should be in a TFSA in other words, can you tell me if DIR. [Dream Industrial Real Estate Investment Trust]
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Q: I need assistance deciding which of these stocks I should put in a regular acct and which should be in a TFSA in other words, can you tell me if DIR.UN has a much higher taxable capital gains (and therefore should be ideally in a TFSA)?

Thanks
Asked by Mark on July 13, 2023
5i Research Answer:

Considering that more of DIR.un's distribution comes from the return of capital (ROC) compared to XEI, it would make sense to place it in a more tax-efficient account. However, we would also point out that dividends/distributions are taxed at a higher rate compared to capital gains (even if in terms of ROC), so we would weigh that before proceeding. For example, dividends/distributions are 100% taxable, whereas 50% of capital gains are taxed at a marginal tax rate. 

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