Q: Is the following true for holding the ETF ZID within a non-registered account:
- Does not have to be declared on the T1135 form.
- Distribution may contain Return of Capital (ROC) which itself is not taxed, but does affect the ACB of the shares.
- Distribution may contain (non-eligible?) dividends.
- Distribution may contain income which is taxed at the same rate as ordinary income , but at the highest marginal tax bracket.
- Distribution is not grossed up (i.e. the dreaded negative effect on OAS).
- Does not have to be declared on the T1135 form.
- Distribution may contain Return of Capital (ROC) which itself is not taxed, but does affect the ACB of the shares.
- Distribution may contain (non-eligible?) dividends.
- Distribution may contain income which is taxed at the same rate as ordinary income , but at the highest marginal tax bracket.
- Distribution is not grossed up (i.e. the dreaded negative effect on OAS).
5i Research Answer:
1) Yes, a Canadian ETF does not have to be reported. 2) Yes, this is possible and will impact...