Q: Can you tell me why there would be 25% withholding on Raytheon dividend?
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Can I open an resp for grandchildren with existing holdings by transferring (opening an resp) there are gains on the stock is it considered a gain.
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Global X S&P 500 Index Corporate Class ETF (HXS)
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Global X Nasdaq-100 Index Corporate Class ETF (HXQ)
Q: Dear 5i,
Do you think the CRA will have any concerns with Horizons change from a Total Return Swap structure to a Total Return Corporate Class structure implemented in Nov. 2019?
I understand that Horizons changed all their Total Return Swap ETF's to this new structure late last year. I would like to avoid any future CRA tax issues if I purchase one of these Total Return Corporate Class ETF's. Your thoughts would be appreciated. Thanks
Do you think the CRA will have any concerns with Horizons change from a Total Return Swap structure to a Total Return Corporate Class structure implemented in Nov. 2019?
I understand that Horizons changed all their Total Return Swap ETF's to this new structure late last year. I would like to avoid any future CRA tax issues if I purchase one of these Total Return Corporate Class ETF's. Your thoughts would be appreciated. Thanks
Q: Hello 5i Team
Given 5i are not tax experts, could you please comment on the subject below as I could not find a clear answer.
1 - If I own, in a taxable account, a US based REIT (i.e Monmouth REIT) and if a portion of the distribution is "return of capital (ROC)", is the US ROC treated the same as Canadian ROC (i.e. deducted from the capital cost of the US REIT each year therefore reducing the adjusted cost basis)?
2 - Or is the US ROC "lost" and I pay tax on it similar to a dividend from a US corporation?
3 - I have noticed the US REITs do not post the tax breakdown of the annual distribution as the majority of Canadian REITs do.
Any suggested source of information for this topic?
Thank you
Given 5i are not tax experts, could you please comment on the subject below as I could not find a clear answer.
1 - If I own, in a taxable account, a US based REIT (i.e Monmouth REIT) and if a portion of the distribution is "return of capital (ROC)", is the US ROC treated the same as Canadian ROC (i.e. deducted from the capital cost of the US REIT each year therefore reducing the adjusted cost basis)?
2 - Or is the US ROC "lost" and I pay tax on it similar to a dividend from a US corporation?
3 - I have noticed the US REITs do not post the tax breakdown of the annual distribution as the majority of Canadian REITs do.
Any suggested source of information for this topic?
Thank you
Q: If BEPC is considered an international holding as it is Bermuda based, does the same apply to BIPC.
Q: Hello
Can you please tell me whether the above noted ETFs are included as part of the $ 100,000 limit imposed by the CRA for reporting foreign assets?
Thank you
Can you please tell me whether the above noted ETFs are included as part of the $ 100,000 limit imposed by the CRA for reporting foreign assets?
Thank you
Q: re: T1135 Foreign Income Verification Form
Hi 5i,
I understand that you are not tax experts but, I would appreciate your thoughts.
I am a Canadian citizen and I have ample cash in my NonReg account such that I can allocate more than $100K to US listed securities on a US exchange. In general, I am interested in purchasing US listed ETF's since they are much cheaper and there are many choices. Are there any drawbacks to exceeding the $100K threshold other than having to file the T1135 form?
thanks for your comments!
Hi 5i,
I understand that you are not tax experts but, I would appreciate your thoughts.
I am a Canadian citizen and I have ample cash in my NonReg account such that I can allocate more than $100K to US listed securities on a US exchange. In general, I am interested in purchasing US listed ETF's since they are much cheaper and there are many choices. Are there any drawbacks to exceeding the $100K threshold other than having to file the T1135 form?
thanks for your comments!
Q: I own GSY.DB in my non-registered account. I have given instructions to convert my debenture to shares at the end of the month. I bought the debentures when they first came out at a price of $100.00. What will be my ACB for these new shares? What price do I use when I report a capital gain for tax purposes assuming I have a capital gain?
Q: Hi Peter, Ryan and Team,
From my readings about RESP, the maximum contribution per child is $50,000. What options are there once we reach that limit? Continue investing in an in-trust trading account ?
Thanks.
From my readings about RESP, the maximum contribution per child is $50,000. What options are there once we reach that limit? Continue investing in an in-trust trading account ?
Thanks.
Q: Fortunately I have been forced into retirement and I do not have to worry about when to take the leap. I am balancing out my portfolio with a strong income focus. My portfolio is approximately 50/50 register and unregistered and I am carrying a large capital loss forward. Which of the above ETF's would be better off in an unregistered account?
Thank you
Stephen
Thank you
Stephen
Q: Hi 5i,
Are there any current or future tax disqualifications if I sold for example QSR at a small loss in a RRSP account (no loss tax benefit) to purchase @ the same price within a Non-Registered account exact same time? The reason is to take greater advantage of the div tax credit outside of the RRSP and reallocate the funds within the RRSP to more forced securities such as KXS or even some bond ETF’s. Basically, setting up for retirement & preserve RRSP funds. My concern on the future tax is if worst case scenario played out and the Non-Registered security (QSR) lost further ground a tax loss would be disqualified somehow.
Are there any current or future tax disqualifications if I sold for example QSR at a small loss in a RRSP account (no loss tax benefit) to purchase @ the same price within a Non-Registered account exact same time? The reason is to take greater advantage of the div tax credit outside of the RRSP and reallocate the funds within the RRSP to more forced securities such as KXS or even some bond ETF’s. Basically, setting up for retirement & preserve RRSP funds. My concern on the future tax is if worst case scenario played out and the Non-Registered security (QSR) lost further ground a tax loss would be disqualified somehow.
Q: I hold XQQ in my RRSP. I read it is better to receive US dollar dividends via a NYSE ETF. ( tax free treatment ). Can you suggest a similar ETF to replace XQQ ?
Q: I am considering buying LIFE, or maybe HHL. I understand the "withholding tax" issue is best handled by having these ETFs being held within ones RRSP.
A clarification question = If the foreign country withholds income taxes, is this reconciled at the time of filing ones income tax? I thought there was a tax agreement or tax treaty that ensured there was no double taxation. So if one paid taxes to the USA on a certain investment, then you didn't have to pay taxes also in Canada...in other words...no double jeopardy. Or...is my understanding incorrect?
The reason I ask is I like the way my portfolio is constructed and have the funds available to purchase either of these ETFs from within my Cash account.
Thanks for your help...much appreciated...Steve
A clarification question = If the foreign country withholds income taxes, is this reconciled at the time of filing ones income tax? I thought there was a tax agreement or tax treaty that ensured there was no double taxation. So if one paid taxes to the USA on a certain investment, then you didn't have to pay taxes also in Canada...in other words...no double jeopardy. Or...is my understanding incorrect?
The reason I ask is I like the way my portfolio is constructed and have the funds available to purchase either of these ETFs from within my Cash account.
Thanks for your help...much appreciated...Steve
Q: What are the tax implications of owning bep.un in Canada?
Q: Hello I was wondering your opinion on this little alt meat company out of Victoria BC. They have only been trading since June 17 publicly before that the founders were on Dragons den and they did a crowd source on Frontfundr for 600k. Yesterday they did a new bought deal through Canacord for 5million. These funds are apparently earmarked for expansion in the US. I have personally tried a couple of their products and found it to be quite good even tastier than BYND (side note I still enjoy a good real burger and steak). Lastly this company has inked a few new distribution deals with grocers like Sobeys and increased their online "meat" club subs. My questions is with this new focus on the US market would it be time to take a chance or start a position.? To my understanding they are in the process of completing a new manufacturing plant in Vancouver to help meet their growing demand. Thanks as always.
Q: Hello 5i Team.
Point of clarification on your reply to Leonard yesterday regarding ZPAY. My understanding is that any dividends from this ETF will be subject to the with holding tax, which is then recoverable upon tax filing. If this is the case, then does it matter if this ETF is held in a RRSP or cash account, if the tax is recoverable?
Due to the options strategy of the ETF, what tax implications are there on any capital gains the ETF may incur?
Please deduct as required. Many tx for the continued help.
Steve
Point of clarification on your reply to Leonard yesterday regarding ZPAY. My understanding is that any dividends from this ETF will be subject to the with holding tax, which is then recoverable upon tax filing. If this is the case, then does it matter if this ETF is held in a RRSP or cash account, if the tax is recoverable?
Due to the options strategy of the ETF, what tax implications are there on any capital gains the ETF may incur?
Please deduct as required. Many tx for the continued help.
Steve
Q: i wish to withdraw dividends from my cdn holdings.
based on type of account, in what order should the withdrawals be made?
1 - tfsa
2 - registered or cash?
i will have losses to apply to the withdrawn income
based on type of account, in what order should the withdrawals be made?
1 - tfsa
2 - registered or cash?
i will have losses to apply to the withdrawn income
Q: Hi 5i team,
I’ve recently sold some of my SHOP position in a taxable account (the share price has risen ~15-fold since purchase about 2-1/2 years ago, and even after this partial disposition, SHOP remains my biggest overall position—thank you for this excellent recommendation!). Now, I want to reduce the tax hit, and so I am planning to sell positions in BMO, BNS, and SU, with aim to rebuy after 31 days (to avoid superficial loss), as these 3 securities are core holdings in my portfolio. In general, when I do tax loss selling, I try to maintain an economic position in the types of companies I am selling, because I’m always anxious the shares will rise during the 30-day waiting period (indeed, frustrating increases in stock prices during the 30-day waiting period seem to happen quite often, at least in my experience). So, my question is: Can you recommend a security (or securities) to maintain economic exposure to BMO/BNS, as well as to SU, for the 30-day waiting period? (For perspective, I’m planning to sell ~$185,000 worth of BMO/BNS, as well as ~$72,000 worth of SU; when I rebuy BMO/BNS/SU, I would then sell the temporary holdings I bought to maintain the economic position.). Would you buy a Canadian bank ETF and Canadian oil sector ETF, to maintain these economic positions (and please recommend some appropriate securities), or rather other individual Canadian banks or individual oil companies (and please recommend some appropriate securities)? Also interested in your philosophical thoughts about how to handle the situation of tax loss selling, which arises every so often, especially now during pandemic, when there is wide variety of individual security performance (some big winners, but also some high-quality stocks that are—hopefully temporarily—depressed in price) as well as higher-than-usual volatility.
Ted
I’ve recently sold some of my SHOP position in a taxable account (the share price has risen ~15-fold since purchase about 2-1/2 years ago, and even after this partial disposition, SHOP remains my biggest overall position—thank you for this excellent recommendation!). Now, I want to reduce the tax hit, and so I am planning to sell positions in BMO, BNS, and SU, with aim to rebuy after 31 days (to avoid superficial loss), as these 3 securities are core holdings in my portfolio. In general, when I do tax loss selling, I try to maintain an economic position in the types of companies I am selling, because I’m always anxious the shares will rise during the 30-day waiting period (indeed, frustrating increases in stock prices during the 30-day waiting period seem to happen quite often, at least in my experience). So, my question is: Can you recommend a security (or securities) to maintain economic exposure to BMO/BNS, as well as to SU, for the 30-day waiting period? (For perspective, I’m planning to sell ~$185,000 worth of BMO/BNS, as well as ~$72,000 worth of SU; when I rebuy BMO/BNS/SU, I would then sell the temporary holdings I bought to maintain the economic position.). Would you buy a Canadian bank ETF and Canadian oil sector ETF, to maintain these economic positions (and please recommend some appropriate securities), or rather other individual Canadian banks or individual oil companies (and please recommend some appropriate securities)? Also interested in your philosophical thoughts about how to handle the situation of tax loss selling, which arises every so often, especially now during pandemic, when there is wide variety of individual security performance (some big winners, but also some high-quality stocks that are—hopefully temporarily—depressed in price) as well as higher-than-usual volatility.
Ted
Q: Hi 5iTeam,
my question is a follow-up on a recent question raised by Ted regarding potential US estate tax liability on US situs investment. I remember a few years ago when Gordon Reid was on Market Call, he commented that even if one's US situs investment exceeds threshold of forty some US$ (I forgot the exact threshold amount) when one passes away, there will be no US estate tax payable unless the total value of the deceased's estate is over the exemption amount of US$11.4M. Would you please confirm if this is still the case.
Cheers,
my question is a follow-up on a recent question raised by Ted regarding potential US estate tax liability on US situs investment. I remember a few years ago when Gordon Reid was on Market Call, he commented that even if one's US situs investment exceeds threshold of forty some US$ (I forgot the exact threshold amount) when one passes away, there will be no US estate tax payable unless the total value of the deceased's estate is over the exemption amount of US$11.4M. Would you please confirm if this is still the case.
Cheers,
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BMO MSCI USA High Quality Index ETF (ZUQ)
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BMO Nasdaq 100 Equity Hedged To CAD Index ETF (ZQQ)
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Fidelity International High Quality ETF (FCIQ)
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Fidelity U.S. High Quality ETF (FCUQ)
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TD Global Technology Leaders Index ETF (TEC)
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BMO Premium Yield ETF (ZPAY)
Q: I am thinking of purchases of these 6 ETFs (or some of them). Would you see ZPAY, FCIQ, and FCUQ as being defensive? And back to the "where should I hold" issue: where would these 6 best be held for tax or other efficiencies: Cash account? RRSP? TFSA? Corporate account? Many thanks.