Investment Q&A

Q: Non-resident tax, I'm considering to reduce my percentage of U.S. contents gradually, since nobody knows what to expect from donald...
Hopefully, this eventual new tariff policy wouldn't affect RSSP .
As you notice, some of the ETF posted are all U.S, companies in the case of XHY and NHYB, they both are mainly Bonds or gvt.Bonds,how tariff could affect the two.?

Thanks again to the team

Dan

Q: With all the problems at CRA regarding TFSA info. I printed out form RC 343 worksheet. Most banks carry info only back seven years. What a mess. Individual still responsible for mistakes if you overcontribute.Penalties will occur. Do 5i members have more info.

Q: According to my readings on US bill 899,Canadian Cies that have high revenues in the USA ,as pipelines or others, could be impacted ( since US revenues of canadian Cies would be progressively be more taxed starting in 2026 ) if the bill were unchanged at the senate.The earnings could then also be impacted. This scenario would not happen according to your former answer on this topics, I wish to better understand this , your view is always appreciated.

Q: Only Canadian dividend stocks own in non-register account qualify for the Dividend Tax Credit? Am I correct?

Q: Hi Peter,

Could you please decode Section 899 of the proposed U.S. tax measure and its potential impact on Canadians receiving income from U.S. sources?

Best,
Matt

Q: Hello, is it better to hold a Corporate Class mutual fund as opposed to a traditional
mutual fund in a Corporate investment account? Could you please explain your answer? Thank you.

Q: Are there any investment options that are independent of capital gains tax policy? For instance an investor may decide not to sell an equity to avoid triggering a capital gain and reducing capital (or may decide to sell for tax loss reasons). To avoid this bias are there etf/ funds that can swap investments without triggering capital gains?

Q: Those excellent Cies, and others in various sectors, could be significantly punished if the US law bill 899 were adopted by the US senate with no change..Curiously, the valuations of those Cies are not compromised to this day , maybe because it is still too early, and that all this would only start in early 2026....What strategy do you suggest concerning all Cies that have significant US revenues in general ,before any official US senate confirmation? Your point of view shall be extremely appreciated !

Q: Regarding Greg's question of June 9/25......re: the tax rate of selling one stock now versus waiting to sell the same stock after his father passes away. While the 5iR answer was technically correct, I would like to add the following:

In Canada we have a graduated tax system.....the more income you make, the higher potential for you to be in a higher tax bracket for that incremental income. Once you pass away, ALL of your RRSP-RRIF holdings are deemed to be withdrawn and taxed as income. Additionally, ALL of your Cash account holdings are deemed to be sold, generating (hopefully) capital gains. Then the combination is taxed according to our graduated tax system.

So....if I understood Greg's question correctly, the estate tax for his father would potentially be significantly higher if he waited until "later".

My personal current Marginal Tax Rate is around 31%. Using TurboTax, my final (terminal) MTR is 49%.

Apologies if I got this wrong and generated any confusion. Please do not post if I got this wrong. Post if I am correct. Thanks....Steve

Q: Hi. would like to know in what account (RRSP,TFSA,NON-REGISTERED) would be best suited for these ETFs and your best to less favored in order for each account type please. ZWB, HCAL, ZWK, ZWE, ZPW, UMAX, HYLD, HDIV, HDIF, ENCC. Thank you

Q: Knowing your not tax experts ,I’m wondering if you could help me with this situation
Would there be any difference in capitol gains tax if my father sold roughly 200K of one stock now,what would be the difference if any,when he passes and the same stock is sold and goes through estate taxes.Is their any tax difference between the 2 scenarios…Thanks

Q: This is in response to Dean's question about the tax treatment of Irish companies like MDT. I hold MDT in a non-registered account and the withholding taxes can be claimed back against my Canadian taxes. The MDT withholding taxes are reported on the T5 as foreign dividend income. In the past, I learned the hard way that taxes are deducted from dividends received from non-US foreign companies held inside an RRSP. I don’t have any knowledge of tax treaties, but that's my experience.

Q: Now that BAM has moved its headquarters to the US, does it make its shares a foreign asset for the point of view of the CRA? To your knowledge does it need to be reported on the T1135 if the holding exceeds 100 000CAD ? What if the BAM position that exceeds 100 000CAD is held in a RRSP or TFSA, would there still be a requirement for the T1135?

Q: Hello 5i,
With regards to MDT & other Irish Domoniced companies that trade on the USA markets such as TT, CAN, ETN, AON, etc.… My broker withheld 25% on all dividend payments in 2024 even though the shares were held in a RRSP. I did well with MDT (Option Premium+Div-Net of Tax, Capital Appreciation) and at some point, I would like to own for dividends MDT or any of the other Irish Domoniced companies that trade on the USA markets. I reached out to my broker since there is a tax treaty with Canada / Irland and completed all recommended documents; the broker continued to deduced 25% of all dividends paid. My question is before I pay the $500 global tax collection or pay a 3rd party for advice would you happen to know or perhaps a reader might know should the Dividend Taxes 25% be taken even in RRSP’s on all Irish Domoniced companies? The net tax so far was ~$3.5K USD so it’s probably enough to seek other avenues to collect the Dividend Tax funds. The simple answer is to seek accounting advice which I certainly will be as an accountant my self this will be a very specialize question that will need an opinion issued.
investorrelations.medtronic.com/opportunities-obtain-irish-dividend-withholding-tax-dwt-exemption
stockanalysis.com/list/irish-stocks-us/

Q: Hello 5i,
Is there an exceptional amount of ROC for NXF.B and if so is it meaningfully detrimental to an investment in this. I enjoy the distribution but I do not want it to bite me in the butt when I finally sell. I have nine such cover call ETF's ( HDIV, HHLE, HMAX, HYLD, NXF.B, QMAX, SMAX, UMAX, ZWH.U) out of 48 positions making up 11% of the portfolio of mostly blue chip solid dividend payers. Am I heading for a disaster when I sell in a 5 to 8 year time frame? 79 year old value investor enjoying dividends.
Stanley

Q: After reading Peter's May 29th question on withholding taxes on Limited Partnerships [LPs] I worry a lot about the Brookfield companies, in particular about BEP.UN = Brookfield Renewable Partners LP. and BIP.UN = Brookfield Infrastructure Partners LP. Are these not limited partnerships?

You say they are "domiciled" in Bermuda I believe, and BAM is moving it's head office to the US so it is all most confusing. Are these companies safe to own now or should I just sell them and move on to other less worrisome companies? They are in my cash account. Trouble is I have very large unrealized capital gains in BIP.UN and BEP.UN and nice dividend income so really don't want to trigger the taxes.
Thank you......... Paul K.

Q: The Moneysaver magazine has a list of high dividend US companies some are limited partnerships.What are the Canada and US tax obligations for dividends received in Canada from a US limited partnership?

Q: Hello 5i,

Sorry to add another question on Withholding tax. If the proposal goes through, is there an advantage to hold CDR's instead of US stocks directly?

Thank you for your help.

D&J

Q: Hi group what the suggested strategy to deal with proposed increase in withholding tax . I am hesitant to buy any more us stocks in my non registered +TSFA accounts ...maybe even sell some? i know we should wait until the prosed increase happens ...looking at US verses Canada stocks in general. Presently CAD are doing better so selling and replacing with CAD stocks may just work out just fine ...thoughts

Q: Hello 5i,
I have read the Q&A around the proposed u.s. tax changes and am unclear as to whether or not holdings within registered plans (LIFs, RRIF's, RRSP's, RESP's(?)) are impacted, or if they retain their current, somewhat protected, status. I am assuming - perhaps completely incorrectly - that the questions asked have been referring to non-registered investments, but that - knowing Trump, registered plans will take the hit as well?
One thought would be - upon finalization of the bill, in whatever end form it finally takes - for 5i to write a report on the impact to Canadian investors once the dust has settled and the ramifications are known.
Many thanks, as always!!!
Cheers,
Mike