Investment Q&A

Q: What are the tax implications when you receive distributions, or sell shares of a partnership such as NRP for a registered account?

Q: Question: My portfolio shows me the above are all down below my purchase price between 23 and 34 %. Would they be good candidates for a tax loss sell and repurchase after January 1

Q: I hope you can answer this tax question about my investments. I have a loss in my cash account on some PPL shares I own. I also hold PPL in my TFSA, where the shares are up substantially. Will the gain in my TFSA prevent me from claiming a tax loss if I sell my losing shares in my cash account?

Q: Can you please provide proxies for tax loss selling for the above noted stocks/ETFs
Please deduct as many credits as necessary.
Thanks for your insight.

Q: Hi Peter, Ryan, and Team,

Please rank the stocks above for tax loss selling purposes. Are they all worth buying after 30 days? (All are down, but T and TCN are really down.)

Thanks as always for your insight.

Q: Good Morning

A hypothetical question. In a tax loss scenario where the stock in question has been sold and now has risen post sale, at what point do the benefits of the tax loss no longer come into play and it makes no sense to buy it back( unless of course it continues to go up). Is there any way to figure this out in general terms or do you have to weigh it out in a case specific manner. Post if you wish
Thank you

Q: In a non registered account,there is no tax on hsav monthly interest neither on hewb monthly dividend.When those ETF are sold though,do one has to pay tax on the total of interest accumulated in the ETF or on total dividends accumulated (+capital gains)since the acquisition,or tax shall be only due on capital gains ?

Q: Greetings:
Knowing that you are not tax experts, and also that you invest in USA securities, do you think that when one invests in USA REITS ( ie, american tower. etc. ) does the 10 % tax apply as in the case of MLP'S.

Also, I am not trying to trip you up, but in two recent answers Bill on Oct 20, and Lorraine on Oct 31. you show different interest rates and mer's for HISA and PSA. Perhaps the interest rates have increased but in the case of PSA the mer has decreased??.

Thanks as always,
BEN.

Q: Re registered plans, your very useful reply to John on 30/10 was 'With lower rates on capital gains, it is better (for most investors) to have equities outside of a registered plan where withdrawals will be taxed at the highest rate.' 

My question is, can a person transfer equities from a RRIF (or an RRSP) to a non-registered account and replace the withdrawn equity with an equivalent valued security/ies. And if so, is the withdrawl from the RRIF or RRSP considered a deemed disposition and taxable?

Thank you kindly.  

Q: Are BIP and BIPC different enough to avoid superficial tax loss rules ?

Q: Could you please expalin your comment to Paul on Oct 26th, '' it is a bit trickier because of the timing as all report earnings prioir to a 30 day window..... if sold this week''
What is the significance of the timing of the sell?

Q: Hi 5i,

I have to take funds from my RRIF which is made up of stocks and fixed income. I want to confirm my thinking on the subject.

I think it is better to take out my stocks first and then in later years the fixed income. My thinking is that the stocks will appreciate faster than the fixed income thus creating more RRIF capital to remove in later years which will cause additional tax. It is better to have the additional appreciation outside of the RRIF.

Do you agree?

Thanks for the help.
John

Q: RE purchasing US treasuries

Hello 5i,
Once or twice I have tried to purchase bonds from my discount broker RBC direct investing. The process to purchase is fairly easy (you will face a hit up front on the bond price compared to the open market). However, when selling a bond or treasury that's when a DIY investor is really at a loss. You call up RBC and then the agent will consult the "manager in the bond department" and they will decide on a price they will give you for the asset you wish to sell. Kind of like a car dealership! It truly is a grey market where your discount broker has all the control of the sale of that fixed asset. Also, if looking at treasuries, you must commit to $10k USD and can't buy, for example in smaller increments, like I wish to do for a family member in a conservative TFSA.

IS there an ETF suggestion for a 10, 20 30 year treasury in USD? Not what i really want, but will mirror the moves in this market, I suppose? TLT is the 20 year. What is the 10 year, 30 year?

Also, can you confirm that the interest paid on the treasury would be tax exempt if held in a TFSA? If tax on interest is exempt in a TFSA, would it still be exempt if one holds the ETF and not the treasury itself?

Q: This is a tough year for investors and I think most of us are interested in the optimum timing to sell your losers (to lock in your tax losses) and then perhaps reacquired the same loser you just sold after 30 days. I've never done any such "linked transactions" before and hope to get some guidance in that regard.

I kind of look at the first 15 days of November for such sales and then the first 15 days of December for requiring those shares (if the price is enticing then). What do you think of the two windows I proposed? What do the more experienced investors do in terms of timing in making this sell and then buy back maneuver.

Please advise.

Q: I just sold the above stocks to harvest tax losses. I intend to repurchase them in 30 days. How important (or prudent) is it, in your opinion, to purchase proxies for them? What could you recommend if your feel it is useful to do so?

Appreciate your insight.

Paul F.

Q: thinking about purchasing some bip.un and just wondering as long as i hold in my registered account [rrsp] will i get all dividends or will there be a withholding tax.
thanks

Q: Hello, Is it better to purchase Canadian bank stocks in a RRSP or non registered acct and why ?

What about U.S. bank stocks?

Thanks so much.

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.