Investment Q&A

Q: Dear 5i,
In regards to Horizons Corporate Class ETF's.
The tax efficiency of these ETF's seem very attractive for taxable accounts.
What are the key risks of holding these products other than market risk?
Is it basically the chance that the Canadian government might change tax legislation for these type of products? If this is the case do you think it is a low probability since it could trigger massive tax liabilities for Horizons and Mutual Fund companies that offer this corporate class structure?

Q: Shaw Communications Inc. were not sold. These shares were redeemed.

Do I still have to pay capital gains in my invest/cash account?

Thank you.

Q: I understand the superficial loss rule in a non-reg account. What happens when one sells a stock at a loss and buys it back within the 30 days but sells everything by year end settlement date. Thanks

Q: Are CIBC CDRs considered US property from a tax standpoint and thus a potential IRS reporting and tax liability? Thanks.

Q: Hi. My stock in a company has gone to zero. What documentation do I need to claim the capital loss, and how do I get that? I invest online with my bank. Nothing is available in with the usual tax documents.

Thanks
Lynn

Q: I have an odd situation regarding capital loss on META. On a US$ basis there is a small capital gain. However, when converting to Canadian $ using actual exchange rates around acquisition dates for adjusted cost base, and using the 2022 annual average exchange rate from BoC for sale proceeds , I get a capital loss. This looks strange. I have checked several sources , and even asked ChatGPT to do the calculation. All calculation methods show results within 1%: a gain in US$ but a loss in Canadian $. Is this even acceptable to CRA? Or am I best to claim no gain, no loss? (I acknowledge of course: 5i are not tax advisors; that 5i is not responsible for whatever I report and whatever sources I use. I’d just appreciate knowing if this sort of bizarre thing does occur). Many thanks.

Q: XPO : I have owned for a few years.
RXO & GXO WERE SPUN OFF. ( as you know)

My question is: at what price were GXO & RXO shares issued?

Thanks … as always.

Q: This question has probably been asked before, but I cannot find it. I sold a stock in my non-registered account for a capital loss and the proceeds will not be reinvested. I hold the same stock in my RRIF. If I add to this same stock with the cash inside my RRIF, will it still trigger the 30-day rule?

Q: Brucey asked a question today about capital losses from previous years and you said to refile previous tax returns to claim the loss. If he is referring to losses he has reported when filing his previous tax returns, then the easy thing to do is report the loss on line 61 of the current year return "net capital losses of other years". The government doesn't automatically do this for you because you can carry forward the losses as long as you want and use them in any future year.

Q: If I have capital losses from any previous years (including 2022), are they automatically applied to my capital gains by the CRA when I do my tax return?

Q: For high yield ETF's like HMAX, ZWB, JEPI, etc, how is the monthly or quarterly payout taxed - interest, dividend, capital gains? If it varies by ETF on these examples, how is it determined? Thanks.

Q: Following BAM spin off in 2022, how does it have to be reported to CRA (capital gain)? Is it treated as a typical disposition? If so, I read the value assigned to each new entity is 88% and 12%, do we use these ratios to calculate the cost base for the capital gain to be reported? Thank you!

Q: Are there any advantages to purchasing an international ETF off of a US exchange in US dollars. My understanding is that withholdings taxes would be the same as Canadian ETF's as long as both ETF's hold individual securities.

Q: Has the new federal budget changed the dividend tax credit?

Q: I retired, fortunately, at age 56 and started to receive a company pension at that time. I am now 68 and am starting to research converting our RRSPs into RRIFs when we turn 71....no rush yet

These past few years BNN has had a Talking Tax show every Friday during March-April. I understand you are not tax experts, but one item came up a few weeks ago, which I tried to dig into.

One of their guests said that one of the advantages of converting your RRSP into a RRIF early was you would then qualify for the $2,000 pension tax credit. You did not quality for this credit with your RRSP. It HAD to be related to your RRIF.

I have done a fair bit of research and come up empty handed. I found some documentation years ago, but can no longer find it....I think I already qualify for this tax credit, simply because I am the recipient of a company pension. I have taken a look at some previous tax submissions and see that I get a "Pension Income Amount" (line 31400). Are we talking about the same $2000 tax credit? Am I interpreting this correctly?

If I am correct, then I would not need to convert our RRSPs into RRIFs at this time.

Thanks for your help....much appreciated,
Steve

Q: How are the returns on these money ETFs taxed?

Is it better to hold this type of ETF in a registered acct?

Q: Hi Peter, Ryan, and Team,

Recently a member (Reg) asked:

Q: I am a holder of CSU inside my TFSA - as such I have received shares of Lumine - realizing you are not tax experts are these Lumine shares allowed to be held inside my TFSA.
My advisor thinks they might not be - TBD. If they are not allowed they need to be removed - would that count as a withdrawal in the eyes of the CRA?
Thanks

Perhaps Reg was asking about the "new" shares of LMN that he received, given that he had already made his maximum contribution to this year's TFSA.

What action should be taken in such a case, to keep the CRA happy?

Thanks as always for your insight.

Q: I am a holder of CSU inside my TFSA - as such I have received shares of Lumine - realizing you are not tax experts are these Lumine shares allowed to be held inside my TFSA.
My advisor thinks they might not be - TBD. If they are not allowed they need to be removed - would that count as a withdrawal in the eyes of the CRA?
Thanks

Q: Some articles now speculate that the federal government will increase the capital gains tax rate in the budget. If this was to occur, how does the government typically announce such an increase? Typically, would the government announce the increase retroactively to the start of this calendar year, or would the increase start as of the date of the announcement in the federal budget? I want to determine, for my particular circumstances, whether it would make sense to sell some winners ahead of any possible increase in the tax rate.

Thank you for your excellent advice.

Q: In your answer to a question from Bill C on Mar 22, you made the statement “Nor do RRSP account holdings”. Are you saying a T1135 form does not have to include US shares held in a RRSP or RRIF. Thanks … Cal