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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello Peter and co.,

I have a follow-up to Simon's question about tax-loss selling of QQQ posted on March 4.

Would leveraged ETFs, such as QLD and TQQQ, also be considered the same as QQQ? While those two ETFs are based on the NASDAQ 100 index, they don't track it directly.

(Also, I do realize you don't endorse the purchase of leveraged ETFs.)

Thank you for your helpful advice!
Read Answer Asked by Keith on March 04, 2022
Q: Unless I misread your reply, in a recent response you suggested that you can claim both the interest charges as well as the principal amount of a loan as a deductible expense when its used to purchase an investment. To my knowledge, only the interest portion of the loan is a tax deduction.
Read Answer Asked by Scott on March 03, 2022
Q: When borrowing to invest interest paid is tax deductible. However, is the amount borrowed to pay the interest, tax deductible as well?
Read Answer Asked by Rajendra on March 03, 2022
Q: I’m 59 and 20 years ago I transferred 62K from a union pension into a LIRA within the Royal Bank blue chip dividend fund that is now worth close to 200K,my question is could I convert this into cash and then transfer to a TFSA and not have to pay any tax because I never got a refund like I would have if it was coming from an RRSP
Or what are my options does it have to stay within some pension model ....Thanks
Read Answer Asked by Greg on February 23, 2022
Q: IF I TRANSFER CASH FROM THE CANADIAN T.F.S.A. TO THE US T..F.S.A., WOULD IT BE AN EXTRA CONTRIBUTION OR JUST PART OF THE WHOLE T.F.S.A.? OF COURSE, I WOULD HAVE TO PAY CONVERSION FEES.
Read Answer Asked by Herbert on February 18, 2022
Q: Hello,
My question is regarding tax loss harvesting. I believe that there is plenty (or at least enough) time to sell then repurchase Shopify within the 30 day period required to harvest a significant loss for tax purposes and not loose out on much increase in price.
Would you agree and any comments?
Thank you,
Brian
Read Answer Asked by Brian on February 18, 2022
Q: What are your thoughts on the earnings. I hold stock in my account and joint account. Both are in Cash account.

Tax Purpose - When I sell do I need to Average combine both accounts. Or I need to report profit separately since one is in joint account and another my own account.

Thanks for the great service
Read Answer Asked by Hector on February 17, 2022
Q: If a dividend or distribution is declared in December 2021 but payed in January 2022, is the revenue taxable in 2021 or 2022?. I think 2022 but I might be wrong. Thanks.

Read Answer Asked by Denise on February 16, 2022
Q: The scenario:
Age 68
RRSP contribution room of $18K
Income (80%) and investment (20%) tax payable for 2021 about $80K
If contribute $18K to the RRSP, tax payable drops by $10K
The tax on RRSP / RRIF withdrawl begins age 71
Available cash for next 7-10 years
To save $10K now based on putting aside $18K to be taxed later seems like a good deal.
The same scenario applies for the following year, with about $25K anticipated new contribution room
Does this look to be a reasonable approach ?
Are there other major considerations I have missed?
Thank you for your views.
Read Answer Asked by TOM on February 16, 2022
Q: You recently answered a question about investing in US companies and being taxed if your holdings are above $100,000. Do the investments held in a RIF count towards the $100,000?

Ron
Read Answer Asked by Ron on February 16, 2022
Q: Further to Cal's question on taxation of the BAMR to BAM.A exchange: the BAMR website states the following:

The exchange would be considered a disposition of the Class A Share of BAM Re. A Canadian resident shareholder who disposes of a share of BAM Re via an exchange would recognize gain or loss equal to the difference between the fair market value of the BAM shares received (at the time of the exchange) and the adjusted cost basis (“ACB”) of the BAM Re Class A shares exchanged.
Read Answer Asked by Stephen on February 14, 2022
Q: Further to Denise's question, and Patricia and 5i's comments on flow-through shares, I thought I would add that there's a place called Bertov Capital Corporation and MLC Financial that sell flow-through shares that purport to eliminate all investment risk by disposing of the flow-through shares in a relatively short period of time and guarantees their tax benefits. I have no affiliation, and have never bought flow-through shares, but I thought that was interesting and was worth sharing.
Read Answer Asked by Christopher on February 14, 2022
Q: Would appreciate your guidance on capital gains reporting to CRA when a US stock in a USD trading account is sold - where does one obtain the relevant USD to CAD conversion rate if that is not provided on tax slips/statements?
Thank you.
Read Answer Asked by D on February 10, 2022
Q: Further to Denise's question Wednesday about seeking ways to reduce taxes when receiving OAS, I have found that the purchase of Flow Through shares helps reduce my taxes. I know they say Flow Throughs are mainly for those in the highest income bracket, but they help all tax payers reduce taxes payable . I guess it is a question of "how much" does it help
Read Answer Asked by Patricia on February 10, 2022
Q: You answered Ronald’s question of Feb 8 re tax implications of having more than $100K in US equities by indicating CRA form 1135 must be completed. You did not indicate if this was only applicable to non- registered accounts. Does it apply to registered accounts e.g. TFSA and RIF. Clarification would be appreciated.
Read Answer Asked by John on February 09, 2022
Q: Hi 5i team:
To calculate the adjusted cost base for shares held in a non-registered account that I wish to sell, do I include the cost of the same shares held in a registered account (TFSA)? Or are they considered two separate pools for tax purposes? Thanks for your help. Ron
Read Answer Asked by RON on February 09, 2022
Q: Are there additional tax implications for Canadians who own more than $100,000 in US equities?
Read Answer Asked by Ronald on February 08, 2022
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