Investment Q&A

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.

Q: On Aug 2/22 there was an answer regarding RRIF mandatory withdrawals rather than sell a stock. It mentioned Withdrawal in kind & transfer stock to cash account., Are there any tax implications. Could you provide example of a stock trade. What if your are losing money on stock can this still be done ????

Q: US Div Stocks vs CAD Div Stocks? I know the Dividend Tax Credit only applies to Canadian Stocks, but these days some good US STocks are paying 9 to 11 %. What is the Dividend Tax Credit worth in terms of %? I guess it is still better to buy Canadian Div Stocks:
The federal dividend tax credit as a percentage of taxable dividends is 15.0198% for eligible dividends and 9.0301% for non-eligible dividends.

Q: Hi Peter/Ryan, I sold 'WELL' at a loss in my TFSA, does the buy back rule still apply in a TFSA or can I buy it back before the 30 days. In a regular account is the 30 days business days or just 30 days in all. Thanks as always.

Q: Not a question but rather a comment on the Q&A earlier today that included mention of TEF, the US ADR for Telefonica.

Investors should be aware that their final yield on dividends will be impacted by Spain’s Financial Transactions Tax, which is also levied on the ADR:

https://www.clearstream.com/clearstream-en/products-and-services/market-coverage/europe-t2s/spain/spain-financial-transaction-tax-ftt--2726042

Q: Good afternoon 5i,

TD has the dividend payments of VIU and VEE respectively at $0.80 and $0.86. Is there a withholding on these amounts since they're foreign or is that automatically built in to the price for share. I'm simply trying to estimate my dividend payment from both.

Why do their payments vary quarter to quarter when other ETF's (e.g. ZSP) keep the same payment rate per quarter?

Thanks in advance. - Jeff

Q: How do I report capital gains of an American stock held in a non registered Account? I

Q: Is there any issue with withholding taxes and holding XBAL in a RRSP?

Thanks,

Joe

Q: I sold these earlier these in a panic , to avoid losing what was left of a fantastic profit : I am OK on the 30 day rule . Technicals seem to be hooking upward and this appears to be an opportunity . I suppose repurchasing is considered bottom fishing but they pass the "would you BUY this stock today?" question .... so would you ?

Q: Assuming the deal happens and 1/2 value is paid in shares of T does that mean 1/2 the ACB of my LWRK shares is now attributable to the new shares of T that I now hold?

Q: Is it possible to get back the witholding taxes collected by the US and how?

Q: What do you think about tax-loss selling each of the above companies at this point? If in favour, do you think I should buy 30 day proxies for each, and if so, what companies? Thanks.

Q: 30 DAYS BUY BACK TAX RULE, DOES IT APPLY ONLY WHEN TAKING A TAX LOSS AND NOT A CAPITAL GAIN?
THE FIRST IN, FIRST OUT RULE, IN OTHER WORDS, YOU BROUGHT 100 SHARES IN 2021, BROUGHT ANOTHER 100 SHARES IN THE SAME STOCK RECENTLY, THEN TURN AROUND AND SOLD 100 SHARES FROM 2021, THUS, DOES THE 30 DAYS APPLY SINCE YOU BROUGHT THEM SIX MONTHS AGO?

Q: Is QST a decent Canadian proxy for XBC?

Q: My question is about tax efficiencies on yields and distributions.
Has anyone created a table to demonstrate the tax implications for stocks? Can this be easily determined? Should REITs always be in TFSAs? What are the tax savings regular acct vs TFSA? How or what would the dividend tax calculation be for the stocks I mentioned?

Thanks for your support
Mark

Q: More fuel for the tax loss selling debate is the prospect of a higher future capital gains tax rate where (hopefully) losses would be worth more also. With federal govt. spending showing no sign of abating and increasing interest payments on its debt, it's possible this issue will be revisited in the next budget.

In Paul's scenario it's possible more tax will be paid by taking the loss now and paying much more later with the greater cap gain on the stock price.

Also, tax rates tend to rise evidenced by tax freedom day getting pushed further along in June, and there's the phenomenon of bracket creep to consider.

Q: I hoped I could shed some light for Paul regarding his question on tax loss selling.

Most people on this site are buy-and hold investors rather than traders. Their thinking is that they can sell, harvest a tax break from the loss, and then buy it back to hold for a long period.

In short, they are aiming to continue holding it for the long term, but getting a tax benefit in the short term by quickly selling and buying it back.

5i - please publish or not as you see fit.

Q: We plan to begin annually to withdraw funds from our RSP investment accounts and transfer the amount minus the withheld taxes in a cash investment account. The funds are not needed at this time but the purpose is to reduce future taxes,although we are aware that we will be paying taxes on 50% of the Capital Gains in the cash investment account as well as taxes on dividends. With the stock market being at a low at this time is it a good strategy to do the withdrawing and reinvesting at this time ?

Q: I would like to capture a tax loss on Otex. Would Engh be a good proxy while I wait to decide whether to rebuy Otex. As always, thanks for your help.

Q: I have seen in several answers you say you are encouraging tax loss selling in this market. Why? I don't see the reason to do that.

Let's use a hypothetical example. Last year I bought $10,000 of stock XYZ. It's fallen 50% so my paper loss is $5000. I sell the stock for a capital loss of $5000. I buy the stock back in 30 days (at the same price I sold it at), or I buy a proxy stock using the $5000 from the sale. Lucky me, one year from now stock XYZ has doubled and I now have a paper capital gain of $5000 (or the proxy stock I bought has doubled, and I have a $5000 gain). I sell the stock XYZ (or the proxy) and have a capital gain of $5000. The loss I generated from tax loss selling offsets the gain I made one year later. Net effect is 0, other than trading commissions.

If I had simply kept the stock XYZ, one year later I would be back at breakeven, no gain or loss.

If you believe in the stock as evidenced that you buy it back 30 days after selling it, or you buy a proxy and keep that, I don't see the point of tax loss selling for the sake of it. If you buy something completely different, that's a different story. But reading through the Q&A must people intend to buy the stock back in 30 days.

For this example keep in mind that the financial situation doesn't suddenly change; my tax bracket remains the same during this example.

Please explain why you are encouraging tax loss selling at this time. I don't see the point of doing this if you intend to buy back the same stock, and you remain within the same tax bracket. If you are relying on the stock being lower 30 days later when you buy it back that is market timing.

Paul