Investment Q&A

Q: hello 5i:
I understand that there is a withholding tax on US dividends within a TFSA. Is the same thing true for interest from a GIC (US GIC denominated in US dollars)?
thanks
Paul L

Q: As a Canadian, if I purchase RY:US on a US Exchange, will the withholding tax rules apply in this case ?

Q: Good afternoon. I have the following tax loss selling question.

Let assume I sell 1000 shares of BCE on October 1. To avoid the superficial loss rule, I will wait 30 days to buy it back. Let’s assume this is November 1.

Then on October 15th, I sell another 1000 shares of BCE. As per the above, I will buy them back on November 15th.

The question I have is as follows - If I buy back the 1000 shares of BCE as planned on November 1st from the first tax loss sale, will this compromise my ability to claim a loss from the second sales of BCE shares on the 15th?

Q: This is about the question asked by Paul regarding tax consequences. I am not sure I understand your answer, you say that "one can even sell in late December (as long as the sell settles in 2023) and then in January and shift the tax burden a full year". In a case like this I would have thought of selling very early in January 2024 instead. Could you comment? Thank you

Q: Awhile ago a G & M columnist wrote a reply to a question and gave advice and details about selling a U.S. listed stock. He recommended not doing it all at once for tax reasons and I am wondering what your thoughts would be. I bought 300 shares of QQQ in the 1990's at about $43/share. It has grown to be a significant portion of my non registered account. I was thinking of selling 100 shares each of the next three years to lessen the tax consequences. (I am a buy and holder). Thoughts and consequences?
Cheers
Paul

Q: For non-registered accounts:
a) Am I correct in assuming that capital losses can only be used to reduce tax on capital gains. and not any other sources of income, such as investment interest ?
b) Similarly, how about capital gains tax reduction through an RRSP contribution -- is this allowed ?
Thank you

Q: same sector tax-loss strategy...What am I missing here...with the assumption that the banks move more or less in tandem...

If I sell BNS stock at a $30K loss and use the funds to buy BMO as a "placeholder", won't I be in the same position either way? i.e. after a 10% gain I would either recover my losses as the BNS stock increases or I would grow tax-free gains as the BMO stock increases (up to $30K)...

Surely for this tax loss strategy it is best to just stick with the company I most believe in, yes?

Q: Hi Peter and Team, your readers may be interested to know that Tim Cesnick's tax and finance articles published by the Globe & Mail are organized and freely available in one location on his website, ourfamilyoffice.ca/our-thinking/articles/ Similar to 5i, he is generous in sharing his knowledge and seems driven by the motto, 'wealth is good provided everyone is wealthy'. I thank you for your significant contribution my and my wife's progress in financial knowledge and literacy.

Q: Is there any difference in tax treatment between VFV and ZSP in a TFSA?

Q: I think there may be some confusion about my previous question re VFV and also a question posed by umedali.
I may have misunderstand, but you seem to imply that VFV would undergo double taxation (withholding) because it is an etf that holds another etf. Is that what you mean by a “second level” of tax?
I am not sure this is correct. The etf being held by VFV would be U.S. domiciled, which would not be subject to tax on the dividends it receives from U.S. companies. However, VFV, being Canadian, would be subject to tax on the flow through of dividends to it from the underlying etf. Then, after this, the dividends should flow through to a Canadian holder without further tax, since it is from a Canadian listed etf. So only one round of taxation. Unfortunately, they call it “level 2” taxation in that link you provided, which is about the most ambiguous label they could have possibly come up with.
As far as I can tell, double taxation would only come into play if the underlying etf held by VFV itself held foreign securities (ex European stocks).
Apologize if I’ve got this all wrong, it’s not very clear on the Vanguard website imo.

Q: For etfs like these held in a cash account, is the holder paying a withholding on the yield, in some way?
Is the tax withheld at the level of the etf provider, or would one see the amount withheld in one’s brokerage account.

Q: If i were to sell some preferreds at a loss, could I claim the capital loss if i were to purchase another denominations of preferreds from the same issuer within the 30 days .
thank you.

Q: If I sell a stock in tfsa, how long before I can buy that same stock in a regular account? Thank you.
Rose

Q: Are dividends paid by Canadian based REITS tax efficient? Or it is depending on a specific REIT ?
Thanks.

Q: Dividend tax credit : Do we still get the dividend tax credit for the canadian stocks included in an ETF that holds both canadian and international stocks?

Q: If I sell 100 shares of company x at a loss, can I sell another 100 shares at a loss within 30 days, and claim both losses?

Thanks

Q: If one sells a Sept put and buys it back at a loss does the 30 rule apply before you can sell another put (say Oct) on the same stock?

Q: For tax efficiency in a non registered account do you recommend HXS and HXQ over ZSP and ZNQ. For US dollars do you like HXS.U and HXQ.U.
For a long term hold what are your thought of HXT in this account?
Thanks

Q: Hello,
I made a silly mistake this morning: I intended to sell all of my 200 shares of CAE in my non-registered account for a tax loss. However, I didn't double-check before submitting my order and ended up buying 200 more shares. Within minutes, I noticed my error and sold all 400 shares.
Do you have any insight into how this will impact my income tax return? Will I still be able to claim the tax loss on the initial 200 shares?
Thanks,
Rory

Q: I was assigned a stock on which i sold a put. When selling the put i clicked the box for uncovered put. In fact, though, i did have the shares to cover it. I would like to sell them now to claim a capital loss. But I am not sure where i sit in terms of that. I am getting a little muddled but i think I will have to wait 30 days. No?