Investment Q&A

Q: Peter and His Wonder Team
Here is an unusual question that I think I know the answer but looking for validation. I bought the largest Russian utility company before Putin invaded the Ukraine. Shortly after, the stock...I guess all Russian stocks...was delisted from the NYSE. I conclude it is a total loss...am I right? However I was wondering if it might ever be reinstated...for example in 5 years from now. If so would I still have claim to my stocks? Please tell me if all this thinking is impossible and this is just a tax loss conclusion. Your opinion please! Thank you!

Q: Before the end of 2023 I sold a position in TOU in my non-registered account in order to take a tax loss. I also have a TOU position in a registered RIF account with a significant gain, which I did not sell. I assume that this does not prevent me in using the loss in my non-registered cash account. I believe that the two accounts have basically nothing to to with each other. I intend to buy back TOU in my non-registered account after 30 days.
Please confirm.
Thank you!
Albert

Q: Re your answer to Fernando, capital losses can be carried forward forever, not only 3 years as per your answer. Capital losses can only be carried Back 3 years and applied to capital gains.

Q: 5i, hypothetical question ... if I sell all of my cash account (15 stocks) , and my capital gain is 300K, is it 27% ~ of 300K I would have to pay ... and : Is there a way to reduce my contribution to the tax pool.
thank you

Q: I recently sold BNS to harvest a capital loss with intention of repurchasing it after 30 days. In the meantime, I purchased ZEB while the 30 period passes. Is ZEB considered a "similar" security and therefore, I am unable to claim this loss?

Q: I realize this question is outside of your area of expertise but I have been reading your Q&A for years and am always amazed at your (and your members) breadth of knowledge. My CND morther recently passed away. She owned no property and all her assets were in TFSA's (4 children listed as beneficiaries) and GIC's in a nonregistered account. All asssets are to be evenly split amongst the 4 chidlren. I am the executor and my only question is, I have a sister in France that is to receive her share 1) does she have to pay any tax on the registered and nonregistered monies she receives or is it the same as in Canada where it is not deemed as income and is not taxed 2) with all the safeguards in place for fraud and money laundering are there limits/issues transfering her $80,000 inheritance and what is the best way to send it?

Any comments welcome

Q: Hi,
On Jan 9th I asked the following question
Q: can you tell me 1) if there is any difference in XEF and ZDM in terms of tax efficiency and 2) which accounts are best to hold these ETFs in in terms of tax efficiency (please rank from best to worse) ?

You answered the first part but not the second part. 2) Could you please rank from best to worse in regard to tax efficiency, which account (e.g., RRSP, TFSA, nonregistered) is best to hold them.
Thanks

Q: Will ZLU have any tax implications if held in a LIRA account?

Q: RBC has in the past year started to record the ROC (return of capital) portion of my monthly investments in my registered accounts. Considering one is taxed on the value of the amount withdrawn from a registered account, I am looking to understand what is the bigger picture intent of RBC adjusting book values down for the ROC in registered accounts? Thanks for your insight!

Q: Setting aside currency considerations, which ETF-- VWO.US or ZEM.CA-- is better to hold within an RRSP? (I am asking this question because I know that based upon the different ways that ETFs are structured, some have less losses based on foreign tax rules and considerations.)

Ted

Q: can you tell me 1) if there is any difference in XEF and ZDM in terms of tax efficiency and 2) which accounts are best to hold these ETFs in in terms of tax efficiency (please rank from best to worse) ?
thanks

Q: Hello
On Jan 4th, I asked a question about the best place to hold VGG for tax efficiency. I was told that a TFSA or RRSP would be best. However, I read an article by Moez Mahrez in Canadian Money saver and looked at the tax efficiency table posted on the same website. If I am correct in my interpretation, both of these sites seem to recommend holding an ETF that trades in CAD but is US listed in a RRSP first and then a non-registered account because the dividend that incurs US withholding tax is recoverable in the non-registered account. In a TFSA, the dividend incurs withholding tax but it is not recoverable. Am I correct in my interpretation?
thanks for your help

Q: can you tell me if holding VEE, ZEM, or XEC has any advantage over the other in terms of tax efficiency? Also, can you rank order in terms of which account emerging market etf should be held for tax efficiency (please rank best to worse).
thanks

Q: Good morning 5i team. I am interested in your opinion of KRP being held in a US rrsp. In reading your last response the withholding tax seemed to override your recommendation. Second question is under the present market conditions with 1 year to a lif conversion I have been bolstering interest yielding investment with a potential for capital gain. Could you recommend 3 Cdn and 3 US stocks or etf's with high dividends that have good earnings outlooks, valuation and perhaps some growth.

Q: Hi Peter, Can i transfer stocks from RESP to kids TFSA account without selling and rebuying?

Q: If an ETF distributes a high proportion of ROC every year ,and if I never sell this ETF,could the adjusted book value become "negative" at some point ? If not,this would mean that the maximum capital gain would always be limited to the NAV if sold ,even if the distributions ,after many years, would exceed the adjusted book value ! there is also a tax advantage as long as it is not sold..

Q: BIPC can be purchased in either Cdn $$ or in US $$. If it is purchased in US $$ are its dividends still eligible for the dividend tax credit?

Q: Hi, Large Cap Tech stocks in US started the new year with a sharp pull back.
In Canada, Shopify was the one which followed the trend with 6-7% drop. Constellation Software was largely unchanged and Lumine is consolidating from recent sharp gains. We hold all above stocks in our Non-Regd as well as TFSA accounts. There is about $80k TFSA Contribution room available, due to withdrawls made last year. We are considering In-Kind contributions to add to our TFSA holdings when MV of these stocks are lower, in order to limit crystallization of capital gains, as all of these names have large gains embedded, in our taxable account. Is it a reasonable approach ?

If technology sector witnesses some more decline (after very strong returns during 2023), what are the next Technical support levels for these three stocks ?

Thank You

Q: Today is the last day for tax loss selling they say. Is this only for stocks or also for options' positions? Should one sell one's positions even if the option expiry date is in Jan to take a loss and re-enter in Jan 24? New to the options writing. Sorry for posting this question during this holiday season. Answer it if you deem this as urgent.
Happy Healthy Peaceful and Prosperous New Year!

Q: Happy Holidays,
I have a question about tax efficiency on HISA ETF investments in non-registered accounts. Do the dividends received from these ETFs qualify for any dividends tax credits? Or are they being treated as interest income, such as GIC, which will be subject to the usual marginal tax rates?

Thank you,