Investment Q&A

Q: Thank you very much again, you guys are great. My questions are about tax season i have 2 questions to ask so you may take 2 credits off here. 1. I sold real matters back on november 18 on my margin account i am going to write it off as a tax loss this year, now if i re buy this stock after 30 days it will still be this calendar year is it ok or do i have to wait till 2021. And my next question is like i sold real in my margin account if i wanted to buy the same stock the next day in my TFSA account, will that be ok to do. Again thank you very much.

Q: I'm a bit confused about your interest expense deductibility answers on money borrowed in order to generate income. Aside from a line of credit, looking solely at a mortgage, is the requirement in order to be able to deduct the mortgage interest that the borrower use the borrowed funds to invest in Canadian dividend paying equities solely? So the borrower could not deduct interest expense if funds were invested in non-dividend payers? Appreciate the clarification on this.

Q: This is a comment to your answer to Kapil regarding deductiblity of interest. I alawys thought that as long as the money that is borrowed be used to generate income "irrespective of it is a line of credit or a mortgage" then interest on this money is tax deductible.

Q: What is the process for selling an equity for a tax loss, but also giving the same stock to a charity to claim a tax deduction?

Q: I own both and at the share exchange price for TOG will have a loss. In order to realize that loss for tax purposes I assume I will need to sell it. Correct?
If I do sell but want to maintain a larger position in the new company, am I able to purchase more WCP right away without offending the superficial loss rules?

Q: Hello, my question is in regards to TLS. With the recent run up on many of the stocks in your recent TLS blog, what are your thoughts on TLS this month for someone with a lot of cash? Does this change any of candidates on your list, and top US picks? I noticed none mentioned. Much thx!

Q: Potential tax loss selling -- could you please provide suitable placeholders for these companies. Also, if you recommend keeping these "placeholders" instead of switching back after 30 days please let me know.

Q: I have both Canadian and US stocks in my TFSA in separate accounts. Is it a mistake to own US stocks in a TFSA due to potential tax issues? Thnks

Q: Do banks keep track of your capital gains, or must i keep track for tax purposes?

Thank you, Jacob

Q: Hi

On the issue of ZEM being more tax efficient than VEE. Does this apply in registered accounts?

Q: I hold BIP.UN in a registered account. When BIPC was created I decided to keep BIP.UN but it is looking like I don't understand the corporate structure. Typically with a unit trust or a partnership the unit holder pays the tax on the income whereas the tax is paid within a corporation so dividends are "after-tax". Since the amount of the distributions are the same for the two entities I figured that BIP.UN would be better off because it didn't have to pay all the tax on its income. By my rough calculations: since the split BIP.UN is up about 20% whereas BIPC is up about 80%. What did I miss?
Thanks for your insight.
Ian

Q: Thank you for your response. Just to clarify.....you say 'maybe a tax on savings'. What especifically would the government consider to be savings?.....GIC/s? If yes, would GIc's within a TRADING ACCT. protected? Is cash in a trading acct. consider savings?
Thank you!

Q: I am considering selling KEY for a tax loss. In this context which company would you suggest as a proxy to buy in the 30 day period before KEY could be bought again, without offending the CRA in terms of superficial selling.

Q: With the possibility of the capital gains exemption being reduced or maybe even eliminated I am considering selling a few high growth stocks in my non-registered account and buying them back the same day in a TFSA where I still have quite a bit of room to contribute. First of all is this allowable under the Revenue Canada taxation rules. Secondly could you comment on whether this is a reasonable strategy to follow. And thirdly how likely do you think the capital gains exemption will be reduced or eliminated over the next year or so. Thank you.

Q: Hi 5i Gang
I have a substantial amount of new cash to invest. It will represent approximately 38% of my portfolio once all invested. I only have room in my non registered accounts now as I have a RRIF and my TFSA (canadian and Us) are maxed out (except for the 6000 that we can add in January). I would like to use about half of this new money to start a US non registered account. I already have a 40% weight in US stocks (which will be a lot less once I add the new CASH.) I am in a low tax bracket presently as I am semi retired and have many write offs. WHAT DO I NEED TO BE AWARE OF with US stocks held in a US non registered account.? Or can you lead me some good articles please.
Thank you as always for keeping me on track.

Q: First of all - you are very helpful and I appreciate it!
Re TFSA U.S. account - apparently if the security in this account has a dividend, it would be subject to 15% withholding tax if you sell. In Canada, the withholding tax is applied against your income tax when you do it up, but how does this withholding tax work in the U.S. if you are not doing U.S. income tax?
Thank you!
Margaret

Q: Can you sell a stock in an unregistered account to claim a loss and then purchase it back in the tfsa before 30 days? Thanks Clare

Q: Hi team,
I recently sold a stock at a loss in my TFSA. Can I buy the same stock in my non-registered account now or do I have to wait the 30 days period required by CRA to avoid a penalty ?
Gratefully,

Jacques IDS

Q: I have held on to BB for a few years. What will it take to get this stock to move significantly? Maybe time for a tax loss sale?

Q: My income is much lower this year. I own 40 Costco shares with an ~$4500 gain. I’m wondering about selling them post dividend to solidify the capital gain. Do I then need to wait 30 days before re-purchasing? If you sell a stock and re-buy within 30 days, then you can’t claim the capital gain or loss? What is your opinion of this strategy?