Investment Q&A

Q: When purchasing International ETS's within in an RRSP is there any withholding tax advantages to holding US traded ETF's?

Q: Do you recommend a level of international exposure in a TFSA even though there is a withholding tax? Would the best strategy be to overweight international exposure in the RRSP and underweight in TFSA.

Q: With the conversion of ATD.B to ATD.A shares, would it be correct to assuming this share conversion would not result in 2021 capital gain? Alimentation Couche Tard news release did not indicate any tax consequences. Thank you.

Q: I have been looking at HCAL, for the dividends. I not sure I understand the Non-Cash distribution. They are showing a non-cash distribution in the amount of $2.324 payable in December. They state the distribution will not be paid in cash but will automatically reinvested in additional units of the ETF and immediately consolidated so the number of units held by the unitholder and the net asset value of the ETF, will not change. So, what does change, with the non cash distribution?

Q: Are there any reasonable tax loss proxies for these names?

Thanks!

Q: Do you know of any 2021 Flow Through LP or funds that are still open for 2021? Or is it too late? Looking for strategies to reduce tax on large capital gains this year. Any other ideas?

Q: Is the 30 day ruling on tax loss selling based on calendar days or business days and is it based on date of sale or settlement date.

Q: Hi Team,
On your response to M Atal today, I am concern by
"The main issue is the tax deferral set up". ?
Horizons has already had to change its structure to adapt to new tax regulations. Horizon clients knows that, I had HXT & HXCN before the change structure. The change structure was made smoothly.
Can you develop "The main Issue" ? Do you mean Horizon will not be able to maintain the TRI structure in future ?
I like TRI structure for deferred gains.
Thanks
Best Regards

Q: Tax question - do you know whether or not CDR's of any of the 18 US equities count toward T1135 declared holdings?

Also if I hold AAPL shares in a separate US account would the core holding there affect its capital gain status if a CDR for AAPL were also to be traded at a different adjusted cost?

Q: Greetings:
As always it is known that you are not tax consultants, but please tell me what you know about a Section 51 election, and when it might be best to make use of it, as well as what CRA form number would be required?

Thank You,
BEN.

Q: Hi, I have about -$6000 (capital loss) I can use to offset my gains this year, maybe more by end of year.
My question is there a limit to how much I can use each year for losses against my gains?
Thanks

Q: I would like to build a more concentrated techy portfolio of our holdings with a 3 year time horizon by concentrating funds on stronger names and selling those you have less confidence in 3 years. Please rank names for
A. new funds to add with a short blurb about
1. growth potential and profit margins
2. risk/ debt, particularly at a time of rising rates
3. competitive advantage
4. management
B. selling with comment about reasons.
Appreciate service you provide - thanks

Q: I just sold some stocks at a loss and the transaction will be officially completed on November 24. What is the first day I can re-buy some of the shares and avoid a superficial loss? What is the last day a stock can be sold this December and still be transacted in 2021? In future, I think I should complete tax-loss harvesting by Nov 1st - would you agree? Thanks for the excellent service at 5i!!

Q: Hi

We want to give each of our children $50,000 each as a Christmas gift, as we believe that we would rather see them enjoy it as we are still alive..

The plan is to take it out of our TFSA and not our cash accounts as we would have to pay capital gains.

We should be able to reinvest the amount taken out of our TFSA in the next year,.

Does this make sense?

Your comments are most welcome

Thank you

Mike

Q: RPI and LWRK are both long-term holds for me, and have done well - particularly RPI (+500%) in spite of the recent slide. However, these were bought in part for their dividends, which have decreased on a percentage basis with the stock price gains. Both have also been rather weak lately, and I can easily get significantly higher dividends with other stocks. I am looking at selling one this year, and the other next year.

Could you comment on which has the least likelihood of a rebound, and should go first.

A further issue is that both are in a taxable account, and the sale of either will result in the complete clawback of OAS due to the capital gains. I have no offsetting loses at the moment. Any suggestions on how to handle this?

Thank-you

Q: In a question today you mentioned that this week is peak tax loss selling time (for Canada).

Does the US have the same "tax loss selling" phenomena at the same time of year? If not the same time, when does their "tax loss selling" season peak?

Thanks, Paul

Q: I have a capital gain this year from PHO. I have never realized a capital loss in my lifetime. If I sell a losing position next year before my taxes are due (before April 30th) am I allowed to use that 2022 loss and apply it against my 2021 gain? Or do I need to sell a losing position in 2021 to apply it to the gain in 2021?

To pay no capital gains tax on PHO, do I need to sell a stock that has a loss amount EQUAL to the gain amount of PHO?

Thank you

Q: For discussion purposes, If one has taxable income of >$220K in Ontario, the tax rate on income would be 53.53% and 26.77% on capital gains (for now!).

My first question is if one trades too frequently in a TFSA and the CRA decrees that this is business income, then is it correct to assume that the gains are taxed at 53.33% i.e., go from 0% tax to 53.53% tax?

My second question. If one trades too frequently in an unregistered cash account, is that also treated as a business and taxed at 53.33% i.e., go from 26.77% tax to 53.54% tax?

Any thoughts on roughly how much “too frequent” is?
Thanks so much.

Q: Hello team,

I have to crystalize some losses to offset gains. I have a substantial position in ABCL (-56%) and BHC (-78%) and can sell either completely and be done with offsetting the gains. Do you suggest I do that or should I get rid of SDGR (-23%), BMBL (-38%) and PENN (-23%) as well ,if ABCL is worth holding onto, at least partially?

I know other than BHC, they all do have a good bounce potential after the tax-loss season is over. However, I also know that something like BMBL or even ABCL may be broken stories and may take a very long time to recover.

I appreciate it if you can share in which order you would sell and why (if you could kindly include the main reason for each).

Best!

Q: For example, I have 200 TD shares at a cost of $50 EA in my cash account with Questrade. I have built this up over the last few years. I have NOT done anything at Tax Time, re: Div Tax Credit, Gross Up, etc. Should I be doing something? Each year I simply filed my Tax return based on what Questrade sent to me & the CRA.

Thank you!