Investment Q&A

Q: hi,
do you know if there is a limit on the number of times one can sell a given equity for a tax loss in a given year, and get the tax advantage?
cheers, chris

Q: Hi...further to my recent questions regarding Eric's NRGI ETF, I just want to make sure I understand the tax treatment of this ETF before I purchase it.

According to his website, NRGI is 82% USA and 18% Cdn as of Aug 31/22.

Please correct me if I am wrong:
1. Any share price appreciation will obviously be taxed as Canadian capital gains.
2. Any dividends from a Canadian company will be taxed as Canadian dividends and received the dividend tax credit.
3. Any dividends from a USA company will be taxed as interest income.
4. Any "covered call" dividends from either a USA or Canadian company will be treated as Canadian capital gains (not 100% sure on this one).

So, ignore the share price appreciation aspect for now. Eric has stated the target distribution is 7%.

My conclusion is that the distribution could then be split into roughly 5% dividend (82% of which would be taxed as interest income) and 2% covered call (taxed as capital gain).

Q#1 = So, is it safe to say that the ETF would be taxed with roughly 4% being interest income tax, a negligible amount of Canadian dividends, and the vast majority being taxed as capital gains (share price change plus CC-dividend impact)?

Q#2 = So, I believe it still makes sense to buy this in a Cash Account...do you agree?

Thanks for helping me understand this one....Steve

Q: I know your standard advice in terrible markets is do nothing, but I think I read you advising another member it might not be a bad idea to sell some names like Google and Amazon and buy them back after a month. Isn't this risky?

Q: I see a lot of questions about tax loss selling with the intent to re-buy after 30 days, and I've never utilized this before. I have approx 250k in an unregistered account across 15 companies, and I'm obviously down on many of them (a lot of tech). Is it okay to not try and take advantage of tax loss selling in this way, given that I'm planning to hold many of these name for at least the next 3+ yrs, and potentially much longer (like 5-10+)? I will be continuing to add to my unregistered account (since I've maxed rrsp and tfsa), and hope to become an increasingly savvy investor, but I'm a bit scared of screwing up tax loss selling to this end, especially at this time with the current volatility. So, would you recommend that this is something I must add to my "arsenal", or just ignore it for now? Are there many successful investors that stay away from the sell then re-buy in 30 days approach all together? Thanks!

Q: Hello, thinking of selling these stocks for tax loss reasons (10-15%). Although one would think a very possible recession with the related decrease in earnings is already baked in share prices, I am afraid it is not entirely so. I intent to buy these stocks back in a month, hopefully with a lower SP. Is the tradeoff between tax loss and the risk of share prices jumping much higher worth it? Thanks

Q: Thinking of selling APPS for tax loss. Does it make sense to purchase AT (Acuityad) on US exchange as a temporary substitute.

Q: VNQ has substantial amount of return of capital. In RRSP, is there any tax liability for canadian owners?

Q: I want to crystalize tax losses in my non-reg account. Can you please suggest good proxies for IYT, VTV, VEA, and IWO? Thanks.

Q: Hi

Is my thinking correct?

Based on the above, next year the Government will be being paying more in OAS and in some cases GIS (the Old Age Pension supplement for low income seniors).

In fact some people who are having their OAS clawed back as of July 2022 based on their 2021 income, can apply to have there OAS recalculated for the period July 2022 to June 2023 should they expect lower income in 2022.

Thank you for your time

Thank you

Mike

Q: Is the Dream Industrial dividend taxed as a Canadian source?

Q: Retirement and tax planning to maximize net dollars during retirement are of interest to me. Can you suggest a few resources that do a nice job with strategies on these subjects. Thank you

Q: In Canada, on death of an individual, are all registered plans (LIF, RRIF) of that person considered sold and added to their estate for tax purposes. What about RESP and TFSA plans? thanks

Q: Can you advise me on how CRA determines how much should be removed from a RIF on an annual basis?

Q: I received shares of TOI because of owning CSU.
The cost value that the bank assigned was of course zero . Is there a calculated value that I should use to determine gain for tax values when theses are sold?

Q: NVDA has dropped over 25% since 21 July, of which there was a 9.7% drop on 13/09.
MSFT has dropped 13.5% since 8 August, of which there was a 5.5% drop on 13/09.
For one, both or none of these stocks, would you recommend taking a tax loss now with the intent to buy back in a month?

Q: TV recently announced:

Trading of the Company's shares has been suspended since August 22, 2022 as a result of the Company filing for protection under the Companies' Creditors Arrangement Act ("CCAA") and this suspension will continue until the delisting takes effect. In addition to the TSX delisting, the Company expects its common shares will also be delisted in due course from the other exchanges on which the common shares currently trade.

Shareholders retain their legal rights and equity interest and are advised to contact their brokerage where shares are held regarding retention policies for unlisted shareholdings and potential for shares to trade in over-the-counter markets.

Can you please guide me as to what my options are.
1) are the shares I hold virtually worthless or is there a decent possibility that if I hold onto them I will receive something? what would you put the odds of getting something at and what do you think it would be relative to their last closing price of $.205
2) If I wanted to sell the share in the "over-the-counter" market they refer to, how do I do that
3) if it were you, what would you do?

Thank you for your advice

Scott

Q: Does the posted yield of about 13% include the .65% management or should .65 be deducted from 13 to reflect the actual yield.
What is your "ballpark guess" as to the percentages of dividends, capital gains and return of capital.
What is the % of U.S. withholding tax. Is it just on dividends or capital gains and roc as well.
Thanks so much

Q: Hi team!
I am considering a hybrid portfolio of either (A) 80% ETFs and 20% individual stocks or (B) 80% in an All-in-one ETF (VEQT/VGRO) and 20% individual stocks. I understand there may be foreign withholding tax considerations on the Vanguard All-in-one ETFs depending on the account type in which it's held and I'm wondering how significant this actually is.

Questions:

- Which accounts out of RRSP/LIRA, TFSA, RESP, and Non-Registered would US listed ETFs be a better alternative due to this foreign withholding tax drag?

- At what account value would the tax drag from these withholding taxes be material enough to warrant buying individual ETFs (ex. VT, VTI, XUU, XEF) instead of using an all in one fund (VGRO or VEQT)?

Trying to avoid losing 15% or more of any US/foreign dividends due to unrecoverable foreign taxes if possible!

Thanks for your great work!

Q: We have been told that a person Age 55 may create a RRIF account & begin drawing payments. Also, that up to $ 2,000 of any income would qualify for the Pension Income Tax Credit of $ 2,000.

However, another source says this is only available at age 65.

Can you shed any light on this - thanks very much

Q: Not a question, I just wanted to say that I was reviewed by the CRA this year for carrying charges, for which my 5i membership makes up a part. I sent in the receipt along with my other docs, and, good news, it was accepted.