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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: I am thinking of investing in VXC (or maybe XAW) in my RRSP. I understand that since this is a fund of funds and some of the underlying ETFs are US based, that there will be foreign withholding tax of some amount. To avoid the tax, am I better off to invest in the underlying ETFs (Canadian versions only) specifically VFV, VIU and VEE? (small cap I could not find). How much of an issue is the foreign withholding tax? Is it small enough to not bother buying all these underlying ETFs directly? Your thoughts please.
Read Answer Asked by David on May 28, 2021
Q: Recently you had a very good article on the tax implications of what type of accounts one has investments in. Unfortunately unable to locate article. Wondering in particular of holding US funds in the US portion of a TFSA - good or bad idea.? Also please explain your answer of March 10/2021 - that BAM.A works better in a TFSA - rather than a RRSP.
Read Answer Asked by Lorraine on May 28, 2021
Q: Although I currently hold VYM and VIG in my RRSP, SCHD has been on my radar for a few years and would appreciate your thoughts on adding this particular US$ ETF in my US$ Non Registered account. More specifically,
Q1. Would the withholding tax be eligible for the foreign tax credit when filing my tax return,
Q2. Would the US dividends be taxed as income, and
Q3. Of the three ETFs mentioned above, which one would you recommend for a US$ Non Registered account and your reason for the recommendation.
As usual, your sage advice is much appreciated.
Read Answer Asked by Francesco on May 27, 2021
Q: Are the cryptocurrency ETFs considered as a currency? And are they still subject to this 30 day tax sale rule?
Read Answer Asked by Jean on May 26, 2021
Q: I have a capital loss in BEP.UN, if I sell would I have to wait 30 days before I bought BEPC?
Read Answer Asked by stephen on May 18, 2021
Q: Suppose I sell a U.S. stock for a capital gain in USD. This must be reported in Canadian $ on Schedule 3 of the income tax return. But in CDN $ at today's exchange rate, I have a (paper) loss. Shall I be claiming a capital loss, even though I won't literally be converting the dollars?
Read Answer Asked by chris on May 17, 2021
Q: If I have a significant carry forward loss but have a small cash position in my non-registered account [mainly fully invested], does it make sense for me to move funds from my TFSA into the non-registered account to try and make some capital gains to offset the loss? In either case I would not be taxed on any gains.

Thanks...
Read Answer Asked by Ronald on May 17, 2021
Q: Hi group re TSFA i have $36,000 room - i was going to sell some losers Like KXS and DOC so i can claim the loss - does the fact that the cash will go into TSFA make any difference with the 30 day repurchase rule? - or does it still apply - thanks
Read Answer Asked by Terence on May 08, 2021
Q: Understanding your not tax experts, do you or any members know if you can write off interest expense if you have a dedicated line of credit and invest inside a TFSA ?
Read Answer Asked by Charles on May 04, 2021
Q: Hi 5i,
I recently topped up Bam.a and want to crystallize a loss on one of Brookfield’s subsidiaries in a taxable account. Will the loss be disallowed by CRA if I do not wait 30 days from settlement of the recent BAM.a purchase?
Tia,
Read Answer Asked by Kat on May 03, 2021
Q: I am sure this question has been asked before. As a general rule of the thumb that stocks, and etfs should be held in various accounts.
Accounts:
CAD Cash
US Cash
RSP
TFSA

I think I know that US Dividend payers should be in RSP, Growth in TFSA, but do you have a high level how to best allocate various types of Stock assets for Cad, US, and International, along with sector allocation or divend?

Thanks.
Read Answer Asked by Colin on May 03, 2021
Q: Hi, friends!
I collected some money from BMO dividend and would like to invest in VOO ETF , but I am afraid of double taxation on capital gain and dividend, in Canada and USA!
Can you tell me when I have to pay taxes for USA and Canada and approximately how much?
I am retire with a small pension, 71 yr.
Thank you, very much
!

Read Answer Asked by Mark on May 03, 2021
Q: If i sell shares in a specific company, say RBC, at a loss and use the proceeds to buy a sector ETF that contains even a small portion of RBC within thirty days, are my losses still considered capital losses by the CRA

thanks

al
Read Answer Asked by alex on May 03, 2021
Q: If ones owns shares in company ‘x’ in their TFSA, and one wants to buy more shares but they have no more cash in their TFSA, what is left is buying more shares in a cash account. In the cash account, is the cost base determined only on the shares in the cash account, or are the shares inside the TFSA used in the cost base determination?
Thank you
Read Answer Asked by Leo on May 03, 2021
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