Investment Q&A

Q: I have had strange issues with my discount broker and RRIF payments.

I discovered that on December 6, two RRIF accounts were put into a negative cash balance, without any action on my part. I was told by my bank that this happened because CRA directed the bank to complete RRIF withdrawals for the year immediately, due to a concern that there were so many new RRIF accounts this year that the withdrawals could not be done in time.

With much effort and many phone calls, this action has been reversed and appropriate withdrawals made.

However, the more I think about it, the stranger this seems. Why would CRA change the rules suddenly without any notice?

I have successfully managed RRIF withdrawals for over fifteen years. I was waiting for significant dividends to be paid into the accounts on December 15 before making the final withdrawals.

I am wondering if anyone else has had the same experience.

Thanks,

Judith

Q: Can I report a capital loss on a foreign stock in a non registered account?

Q: This is in regard to Patricia's Q of Dec. 14, about selling a stock with a capital gain and buying it back the same day. I'd like to relate my recent experience.

I owned 1000 shares of BTE (ACB $2.26) and a week ago I sold them all (for $4.57) to crystalize the capital gain. Later that same day I bought back 1000 BTE at $4.45.

On Friday I noticed, in "My Holdings Details", that the ACB for my new shares was listed as $3.36! As it happened, the ACB of the sold shares had been averaged with the cost of the new shares, giving me an ACB of $3.36 for 2000 shares.

Effectively, my old shares were sold for a much smaller gain, and the new shares, which should actually have a slight loss right now, show a gain of ~$1000.

So now I'm trying to sort this out with Investorline, and am waiting to hear back.

Next time I will wait a day or two between such transactions, in order to avoid this trouble.

Q: I realize you are not tax experts but I am confused from info obtained from bank and CRA web sites. I am 69 and wife is 59. I would like to split income from RRSP (not RRIF) with her when I withdraw some funds this year to pay for house repairs. Some sites indicate that RRSP withdrawals do not count as pension income. Does this mean that I can’t split it with her? CRA seems to say that RRSP (T4RSP) is eligible. Confusing!

Thoughts from you and members would be helpful.

Q: can i sell a stock in my nonregistered acccount for a tax loss if I have a capital gain for this stock in another account such as a TFSA or RRSP or if my spouse has a capital gain for this stock in a nonregistered account?

Q: I just wanted to make sure I understood the CRA attribution rules. Let's say I have $10,000 and it earns interest in a taxable account @ 5% = $500. I have to claim that $500 on my income tax. Now suppose the next year that $500 earns more interest @ 5% = $25. Again, I could claim that $25 on my income tax.

However, my understanding is that this 2nd generation interest (interest on interest of $25) does not need to be claimed by me. Instead, it could be claimed under my wife's income tax. Am I correct?

If I am correct, my plan would be to transfer the interest monies I earned during 2023 from RBF2010 (basically a RBC money market fund currently earning 4.55%) to my wife's account in early 2024.

Please confirm my understanding is correct....thanks...Steve

Q: Could you please explain why it isn’t in one’s best interest to withdraw more than the mandatory RRSP annual withdrawal??

Q: I am carrying losses of previous years and want to use them up. Can I sell stocks with capital gains and buy them back the same day, or do I have to wait a day? Thank you.

Q: Would it be appropriate to sell Magna for a tax loss at this time?
Thank you

Q: Hello, can you comment on CGI’s latest earnings last month? Is it still a buy even if it is close to its 52-week high, and if so, why? Thanks.

Q: Hi 5i Team - Could you tell me where I can locate your 2023 tax loss screener. Thanks.

Q: I hold HXDM in my unregistered account (MER: 0.22 + max 0.3 swap fee) and am looking for an international ETF for developed countries (ex. Canada & US), that like HXDM does not include small caps, only medium and large cap stocks. I could use HXDM but fees are high and AUM is only 477M, however, there is no withholding tax with HXDM - your comments appreciated.
Thanks!

Q: Hi, Further to the Tax-Loss selling question on BCE, the Ex-Dividend Date is Dec 14th. While selling/booking the capital loss, would it make more sense to sell between Dec 14 to Dec 27, so not to lose 97 Cents dividend, and then buy back after 30 days ? Generally, my experience is that, on the Ex-Dividend date, the stock price drops, but recovers to previous levels, within a few days. Thank You

Q: Is BCE a good candidate for selling now for a capital loss and buying back in 30 days?
Thank you

Q: What percentage of a RRIF must a person who is 76 in 2023 withdraw?
Thanks
Dave

Q: Hello. Any views on the proposed AMT changes related to the inclusion rate for capital gains/losses? At this time there really seems to be a significant imbalance between gains and losses, but I am also hearing that because of this there is significant pushback.

Thanks.

Q: Selling BIPC for tax loss and planning to rebuy iin 30 days. Can you please suggest a proxy? Or not.
Many thanks and Happy Holidays
C

Q: I am not a TAX expert but I thought that any option premium collected today should be claimed in 2023 not 2024. Since income is coming this year not next year.


Q: Good morning 5i
Looked on Google for an answer for this question but couldn’t find anything. If i sell a covered call option today with an expiration date in January, in which the stock is called away, in what year would I pay the capital gains tax, 23 or 24?
Thanks
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Asked by joseph on December 08, 2023
5I RESEARCH ANSWER:
The stock will be sold in 2024, so is taxable in 2024. The options will be closed out in 2024, so the premium is also taxable in 2024 (as a capital gain).

Q: I just sold Aritzia for a tax loss. Is there a proxy you would recommend?

Q: I intend to use as many losing companies such as above POU, RY, TOU and MG (presently underwater) against a significant amount of capital gains to reduce my taxes for 2023. I will probably buy them back in the new year. What is wrong with this approach? Please explain.
Thank you.