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AbbVie Inc. (ABBV $227.45)
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Restaurant Brands International Inc. (QSR $73.36)
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Brookfield Infrastructure Corporation (BIPC $46.21)
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Emera Incorporated (EMA $52.18)
Q: To receive US funds I have 23 shares of ABBV, 78 shares BIPC, 62 shares EMA and 74 haes of QSR in a US TFSA account with TD Webroker in Canada.
1. Since the witholding tax is not recoverable should I switch these holdings to a non-registered US account?
2. Though I like the US funds received as dividends, would it be more efficient to switch these to Canadian holdings for the tax credit and hold them in a non-registered Canadian account? please use as many credits as required.
1. Since the witholding tax is not recoverable should I switch these holdings to a non-registered US account?
2. Though I like the US funds received as dividends, would it be more efficient to switch these to Canadian holdings for the tax credit and hold them in a non-registered Canadian account? please use as many credits as required.
5i Research Answer:
Much will depend on the tax situation of the investor, but generally it can make sense to have withholding tax stocks outside of a registered plan. On the tax credit, the account does not matter. If it is a Canadian corporation the dividend tax credit still applies. We prefer to keep US currency dividends in a US dollar account. Note only EMA is going to get the full dividend tax credit of this list.