Investment Q&A

Q: Hi 5i. Merry Christmas to all !

I need some help with the mechanics of an 'in-kind transfer'. Particularly with one from a RRSP to a TFSA.

If I use the 2023 TFSA contribution limit of $6500 and want to move that amount of Stock 'A' from a RRSP to a TFSA, then I understand that withholding tax would apply to that amount.

Where does the withholding tax get paid from? I am assuming a number of Stock 'A' shares would be sold to cover the amount of tax owed. Is that correct?

Furthermore, is it possible to have the withholding tax paid from cash within the RRSP or would the tax owed be added to the transfer of $6500 0f Stock 'A' to the TFSA?

Essentially, can I move $6500 of Stock 'A' to the TFSA and pay the withholding tax from cash in the RRSP, as if they were two separate transactions.

Thanks in advance.

Martin

Q: With reference to Andrea's question on transfer-in-kind of stock to TFSA,
what if the transfer involves capital gains, instead of loss, with stocks transferred from a non registered account to a TFSA? How should the capital gains be handled?

Q: The answer here might be obvious, but I'll ask the question nevertheless. Is there a CRA weasel rule that discourages selling a stock at a profit inside a TFSA and then immediately buying the same stock in an unregistered account?

Q: If one were to sell BNRE at a capital loss and purchase BN with the proceeds would this stay onside with 30 day rule?

Q: This is probably a silly question but I don't want to make a mistake.
Instead of raising 6500.00 cash for my TFSA on Jan 1st, I'm thinking about transferring stock out of my cash account instead. I've already sold my tax loss candidates. I'm not sure how this works though. If my book cost is 6500.00 and market value is 3000.00, does that mean I've contributed my full amount? And in what scenario would this be a smart idea? I could also transfer stocks with significant capital gains.

Thanks,
Andrea

Q: What is the advantage of tax loss harvesting if one has not recorded any capital gains in the previous three years. If I sell something at a loss I can carry forward the loss indefinitely. No rush to sell winners in this case.

Q: Good morning - reading about the 10pc withholding on US publicly traded partnerships and the US tax filing requirement to get the wh back. I have positions in two REITs in the US and wonder if I shouldn't bail right now and avoid the filing requirement. Also, part of my holdings are in registered accounts and this does not look good to me. Please advise. Thanks as usual.

Also, Merry Christmas to all of you at 5i. Your service has been a big help to me over the years, thanks again

al

Q: Hello
If I sell PHYS and my husband sells GLDM would AEM and PSLV be considered to close to PHYS and GLDM by CRA for tax loss harvesting?

Q: Do I have this straight ? As a ( Canadian ) holder of these two non American ( Bermuda )stocks, effective January 1/23, when I sell them, I will be subject to a 10% withholding tax and will be required to file a US tax return ?

WOW !

Q: From Disnat website:

Changes to the U.S. Taxation of Publicly traded partnerships (PTP)
starting January 1st, 2023 (Internal Revenue Code section 1446).
New US regulations taking effect on January 1, 2023, will result in new withholding taxes for sales of publicly traded partnerships by non-US account holders.
Once these rules take effect in 2023, when a non-US national sells an interest in a publicly traded partnership, 10% of the gross proceeds of the sale will be withheld. The withholding taxes will be remitted to the US Treasury, and the non-US national will be responsible for filing a US income tax return and claiming any potential refund of the amount withheld. 

Will BAM be affected by this knew legislation?
Thank you.

Q: Can you dumb down the non-cash distribution capreit announced tonight?

For me specifically, I hold it within a TFSA - what can I expect? Don't hold enough shares to even accumulate what would amount to one share, thought I might have understood that completely wrong as I guess no one is actually gaining shares?

Thanks in advance

Q: In Investment (non-registered) accounts these 5 stocks are all 'under-water'. I am considering selling for 'tax loss' purposes and would appreciate your thoughts. Is this a useful approach? Are there any that merit re-purchase following 30 days 'waiting period'?

Q: Will the 10% US withholding tax on dispositions and distributions of PTPs, levied against non-US persons effective January 1, 2023 apply to the old BAM.A or the new BN (or both)? And how is BAMR impacted?

Brookfield website says "section 1446(f) will not apply) to BAM.A but gives no detail, unlike their website on BIP (which details that section 1446(f) does not apply due to being Bermuda based and that the 10% exception rule applies)

I have a significant holding in BAM.A and want to know if I should take action prior to Jan 1, 2023

Q: What is the last day to sell a stock and have it count in 2022?

Q: My biggest loosers are TCN,ECN,SHOPIFY,WELL,WFG, NOT MENTIONING LOWER LOSSES STOCKS, wHICH ONE SHOULD BE SOLD AND WHICH ONE TO BUY AFTER 30 DAYS.

Q: Hello Peter, Apologize as i know you have addressed this but i am still confused. I would appreciate it if you can answer each of my concerns to clarify.
1. I hold both bep.un and bip.un in RRSP and TFSA. Will there be withholding tax as of Jan 2023 in both cases and if so, is the 10 percent tax on dividends and capital gains only ? If this is the case, I am assuming the brokerage would use the ACB to calculate the gains.
2. Would it better to sell both of these and redirect monies into BN and BAM
3. If i decide i don't want to deal with the tax , can i simply exchange both for bipc and bepc and if so, am I not losing as the prices of bipc and bepc are much higher and dividends are lower yield wise
4. Lastly if there is withholding tax on tfsa and rrsp, how do we recover it..
5. Could the tax just be on tfsa and not rrsp as rrsp is normally exempt from any withholding of dividends etc
Sincere thanks and happy holiday season..

Q: I got a note from BMO Investorline to fill out form W-8BEN regarding US withholding taxes.

Do I have to fill out this form if I only by US stocks in an RRSP?

thanks,

Paul

Q: 11:23 AM 12/13/2022
It seems that the Brookfields are nothing but trouble from a taxable perspective and the new withholding tax may make it worse. The brokers will naturally take the withholding tax and it will be a fight to try to claim it back.

My question however is about the exchangeability of BEP.UN and BIP.UN into BEPC and BIPC. Can these exchanges still be made?

If I get my broker to do the exchanges does this become a taxable capital gains event? If so it is prohibitive for us as we have huge capital gains in both BEP.UN and BIP.UN which would prohibit the exchange.

Any suggestions on what to do?

Thank you......... Paul W. K.

Q: Will these be subject to proposed tax if held in tfsa?

Q: I hold the above stocks in my Unregistered,TFSA,and RRIF accounts. I understand that as of January 1, 2023, the IRS will require a 10% withholding tax when Canadian residents sell US stocks. Does this rule apply to sell any of the above mentioned my stocks ?

2) If I sell above Stocks before end of 2022, will I avoid paying new IRS 2023 10% withholding tax?