Q: Just realizing that the BIP.U I hold in my CD cash account is not tax favorable.
I plan to buy BIPC. Then sell BIP.U a couple of days later, at a tax loss. Assume that will be kosher, and that I can claim a tax loss?
Secondly, I notice that this company pays dividends in US $. I could buy it in my US$ account. Does that make better financial sense? I would lose the dividend tax credit, but perhaps save on currency transfer fee each Q?
Thanks for your timely responses. This Q/A feature is what I love about 5i!
I plan to buy BIPC. Then sell BIP.U a couple of days later, at a tax loss. Assume that will be kosher, and that I can claim a tax loss?
Secondly, I notice that this company pays dividends in US $. I could buy it in my US$ account. Does that make better financial sense? I would lose the dividend tax credit, but perhaps save on currency transfer fee each Q?
Thanks for your timely responses. This Q/A feature is what I love about 5i!
5i Research Answer:
BIPC is a Canadian corp., and as such one still gets the dividend tax credit regardless of the currency of the dividend. We can't speak for the CRA, but because it is 'economically equivalent' we are sure the CRA would deny the loss unless an investor waits 30 days to make this switch. We do prefer keeping US dividends inside a US dollar account.