Investment Q&A

Q: My son inadvertently, a while back, bought Canadian companies (eg. SLF) in his US Margin account. Is there a way to get them back to the Canadian margin account? Is that called "Journaling"? Would you end up with more shares on the Canadian side, given that you are converting from the US $? Any gain/loss/currency tax issues? Thanks very much.

Q: When journaling a Canadian stock such as TRI to the US side of an account how would trading platforms calculate the book value (ACB)? If/how differing exchange rates at the time of purchase, journaling and sale affect the calculation of capital gain? Assume that the stock was purchased when the exchange rate was much lower.

Q: I'm looking for a stable long term hold with some growth and a generous dividend to complement my Enbridge holding? These are all US holdings, do I have to worry about special withholding taxes? Are they suitable for RRSP's?

Q: Canadian companies with US operations could be a target under the IRS section 891 to double taxes paid on their US operations in retaliation for our DST and UTPR according to tax experts here. What Canadian companies are most at risk for this?

https://financialpost.com/news/economy/canadian-business-pay-price-digital-services-tax

Q: If you own a Canadian domiciled ETF that holds US fixed income (like ZTS) what are the tax implications? Is there withholding tax if held in an RRSP, TFSA, or taxable account?
Some websites say no withholding tax on U.S. bonds but others say yes. What's the right answer?

Q: Would Canadian funds such as ENCC, BANK, HMAX which hold Canadian stocks be taxed as dividend income or as capital gains income by the CRA ?
I believe that similar funds holding US stocks would be taxed as capital gains.
Thank you.

Q: Perhaps it is dumb question time, however I am struggling to understand the reported stats for UMAX. Perhaps it is an obvious answer I am missing.

As of Jan 21, 2025 the Hamilton ETF's web site says UMAX is yielding 14.67%. Just below that it shows "Total Returns (incl. Dividends)" of -4.53 for 1 month to 4.18% since inception. How is this possible without eroding the NAV (or a significant stock value loss, which I do not see based on stocks in the ETF). Scratching my head to see how this math works, as I was considering this ETF for yield in a LIF.

Thanks

Dave

Q: any idea if you are using you tfsa for a GIC yield if it would effect your O.A.S. to be clawed back.

Q: I have most of our Reits in our TFSA accounts, which I understand really should be for more growth stocks. If I take a position with CHP.UN and put it in our margin account, do you know how much would be Dividend and how much is other income that is taxed differently? Does it make that much difference?
Reits have been out of favour recently and coming to year lows. Do you see this as a buying opportunity, or are you cautionary? Do you see more potential downside?
Thanks so much!

Q: Hi Peter - I've gotten some more info re my question yesterday on the subject of the 'phantom distribution',

TDAM confirmed that the Notional distribution will increase the book value and that the distribution is a capital gain.

To me this means that I must dispose of all the shares in order to realize the capital loss and can only apply it to the 2025 tax year. Is this correct? And since only 50% of capital gains/losses are taxed, then for a USD 10,000 Notional distribution the benefit is really only USD 5,000 that can be applied as a capital loss. Is this correct? And if I was to claim a capital loss, I'd have to wait 30 days before I could repurchase TDB2915. Is this correct?

I should be grateful for the unexpected distribution, but overall it looks more like a 'poor man's' dividend to me.

Many thanks again for your much appreciated views.

Q: Hi again Peter
Re this money market fund, if i sell it all, can i purchase another one of a different series at the same institution before the 30 days are up? That is if i can find one without a trailing fee for a short ownership period.

Thank you again

Q: As part of my annual 2025 TSFA contribution moved 100 CLS shares cost $53.12 from my trading account to TSFA $$148.00. How is the capital gain treated.
Thanks and look forward to your answer.
Rick

Q: Does it ever make sense to shift funds from a TFSA to a RRSP for the purposes of reducing your tax bill (ie receiving a better refund)? Under what conditions might it be appropropriate? Or does short term gain of a tax return undermine the long term power of a TFSA?

Q: I just made a direct transfer of a US security from my margin account into my TFSA. What exchange rate do I use to calculate how much room I have left on this year's max contribution?

Appreciate your insight.

Paul F.

Q: For US taxable capital gains, US dividends and US withholding taxes, does the CRA allow a taxpayer to use the average foreign exchange rate for 2024 when preparing  the income tax return for 2024???......Tom

Q: To my big surprise the monthly income from XDIV is classified as "interests" income at BMO Investorline and not as dividends income. A T5 slip will confirm this in a few weeks but in your view should it be interest or dividend? Thanks.

Q: Good day, 5I. Is it ok to sell a ETF in a RIF and repurchase immediately in a TFSA. There would be no capital gains or losses to claim. Thank you.

Q: As a follow up to my question on January 8 regarding ETFs you suggested ZSP to represent S&P 500
Would HXS be a better alternative since there will be no withholding tax in the TFSA as per asked by Danny boy on January 10?

Q: I hold BAM, BIP.UN, BIPC, BEP.UN, BEPC and BN in a non registered account. For September and December dividend payments, I noticed that a withholding tax was applied to BIP.UN. For tax purposes, would any of the 6 stocks listed be better off in a registered account?

Q: Just double checking….. I sold TD on Dec 6 but as that was a Friday, it settled on Dec 9. TD goes ex-dividend on Jan 10. As my sell settled on Dec 9, am I correct that the earliest I can buy TD to avoid the superficial loss rule is Jan 9 (day 31) and this should settle on Jan 10 as the 9th is a Thursday, thus allowing me to get the dividend?? This is a follow up to an earlier question where it was indicated I could repurchase TD on Jan 8 but I suspect that did not take into account the delayed settlement date due to the weekend.

Thank you