Investment Q&A

Q: Retired dividend-income investor. I own Park Lawn (70% in my Cash account and 30% in my TFSA). I am down 10% in the Cash account (without the dividends) and down 45% in my TFSA. My current thought is to sell all of my PLC shares held in my Cash account, wait at least 30 days and then re-evaluate and potentially add to my PLC-TFSA shares. I still believe in PLC, but think it might be a while before a rebound occurs and I could capture the capital loss.

Question #1 = I just wanted to check with you that the above plan would meet the CRA superficial tax loss rules (STLR).

Q#2 = Further, my understanding regarding "STLR" are that it does not matter if you hold the same security in multiple accounts (RRSP, TFSA, Cash) and if you are up or down in any of these accounts, that if you wish to claim a loss related to a sale in the Cash account, as long as you don't buy or sell in any account within the 30 day window either before or after the "sale" date, then the sale will meet the CRA Tax Loss requirements. Am I correct?

Thanks in advance for the clarification...Steve

Q: We're well into tax loss season. What looks like the best Canadian investments today? I'm a balanced investor - 83 years old, not needing the money and wanting top gift the children.

John

Q: My plan is delay OAS, at the same time trying to not go overboard on dividend-payers in my taxable account to limit the clawback. I'm wondering if adding REITs instead tend to help that situation.

Generally speaking, is the payout from Canadian REITs such as GRT.UN and DIR.UN in a form that is beneficial in that regard? Is there a CAD ETF that invests in the U.S. that might also be a good idea?

I hope this doesn't come across as tax advice.

Q: If one were to sell Brookfield Renewables (BEPC) taking a capital loss would you be in contravention of the 30 day buyback rule if you immediately purchased Brookfield Corp (BN)?

Thanks for the great service.

Q: I am down considerably on BNS. Even though it is a bank stock, would it be appropriate to sell it for a tax loss?
Thank you

Q: I spent some time reading the Offer to Exchange as I was thinking of doing this even before the offer came out. I am trying to reduce my taxable income because of the clawback of OAS and the RoC distributions works for that. However, I noticed that this will be a taxable event, ie it will generate a capital gain or loss on the BN shares that are exchanged. For long time holders with a capital gain it may not be worth doing. I didn't see any mention of the tax consequences in previous questions.

Q: Hello,
Based on their financial statements, are these companies worth keeping or exit before year end for capital loss?
Thanks
CR

Q: If one believed that now was a good time to start picking away at beaten up stocks, how much should the fear of tax loss selling in the next 6 weeks weigh on the decision of whether or not to buy now or wait? Probably not a great way to invest pitting the fear of short term loss against fomo. Could you also highlight 10 or 12 Cdn stocks that in your opinion are the most vulnerable to taking a big tax loss selling hit this year. Thank you.

Q: I have some US$ and want to buy BEPC:US. I held BEP:US and a few years ago and faced higher taxes on dividends and maybe capital gains from the US with a partnership - can you confirm this will not be the case with BEPC:US? I also just bought BCE:US - can you please confirm that I will still get the Canadian dividend tax credit for with BCE:US and BEPC:US.
Thanks!

Q: Regarding your very quick response to my question yesterday where you stated "Capital gains are treated the same as Canadian gains, but must be converted to C$ for tax purposes." ZSP is a Canadian listed equity in Canadian dollars so I assume that I will not need to make any conversion when taking a capital gain? If I alternatively buy HXS (or HXQ) will capital gains be treated as Canadian only?
Thank you.

Q: If I buy ZSP in a non-registered account, are the dividends and capital gains treated as Canadian or US?

Q: I bought LAC shortly before the spin-off. It's now been a bit over a week since the spin-off and my brokerage account shows LAAC with a cost per share which is equal to my original cost of LAC. And it shows LAC of having a cost which is about 71% of the original cost. (So it shows the combined cost for both is 71% higher than the actual cost). Do you know how the cost was supposed to be applied between the two?

Q: Tax Loss selling time is just around the corner and I would like to take advantage of losses I have in above companies. I have some gains this year and I paid taxes on gains for the last 3 years as well.
Would you sell one position only and which one would you suggest. I would like to buy back at the appropriate time as well.
I would appreciate if you could prepare us for this event of tax loss selling and refresh our memories.
Thank you!
Albert

Q: Does their dividend qualify for the Canadian Dividend tax credit?
Thank you

Q: Two questions about the Veralto (VLTO) spinoff from Danaher (DHR) (I acquired 125sh as a result of owning 375 shares of DHR), in a taxable account:

1. Would you add to this VLTO position? (In general, per my previous experience, spinoffs are usually attractively priced in the first months following their creation, due to numerous shareholders disposing of relatively small numbers of shares received). Plus, I initially purchased DHR several years ago in large part due to its “water business” (now spun off as VLTO), and so am keen to continue to invest in this sector.
2. Do you know how a Canadian shareholder would account for these shares (in a taxable account)? It looks like my brokerage account has valued the spinoff at US$9631.25, and has not changed (at least, not yet) the book value of the DHR shares (US$113,231). In other words, would the spinoff just be considered as a one-time foreign income event (US$9631.25 or ~CAD$13,200, at ~1.37 exchange rate); sort of like a special foreign dividend, but without any withholding tax applied, with the cost basis for DHR unchanged (US$113,231) and US$9631.25 as the cost base for the acquired VLTO shares (with me paying tax on ~CAD13,200 of foreign income)? Or should this event be considered non-taxable, with the pre-spinoff cost basis of the DHR shares split proportionately between the two entities, DHR and VLTO (something like US$103,600 for DHR and US$9631.25 for VLTO)?

Ted

Q: This morning you responded to a question from Ralph regarding TXPDDV. I checked my SDRIF and I see that for my shares of VFV I receive a TXPDDV. I understood that there was no withholding tax in a SDRIF.

Q: When on the calendar do you feel tax loss selling generally bottoms out and would you look to be buying something like Cargojet? Do you have a few other candidates?

Q: Hi Team,
I am down 20% with BCE and 19% with ENB. Would this be a good time to crystallise my capital loss?
Do you see a short term rebound?
If I sell, would you be re-entering these two after the 30 days or move to something else?
Thanks

Q: Good morning,

If I were to inadvertently trigger the superficial loss rule by selling a security in my wife's cash account, and then forgetfully buying that same security back in my LIRA say 15 days later, would the CRA automatically catch it? Or would they only catch it through an audit? Or should it be self-reported? Just want to better understand how to rectify the error.

Q: Some of my ETF pay a dividend with a code txpddv

Tax paid dividend.

How are they able to do this. What is the possible

down side risks. Thanks.

ralph