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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: 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
Read Answer Asked by clara on December 01, 2020
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
Read Answer Asked by Jacques on November 30, 2020
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?
Read Answer Asked by Steven on November 30, 2020
Q: Here is what Taxtips.ca gives as a reason for not selling options:
We traded options for about a decade, and in the end finally decided to quit, because

bullet there was too much record keeping to be done
bullet we always had to keep on top of whether the stocks were close to exercise price
bullet when we used a full-service broker, it seemed we would be warned before anything was exercised and that we could have some input, but once we used a discount brokerage options would be exercised without warning, and we would find out after the fact.
bullet it was impossible to quantify true gains and losses, and it certainly didn't seem worth all the effort we put into it
They undoubtedly know more than I do but I find their analysis a little extreme. Wondering what you think of it.

I was looking at their site in order to get an idea about paying taxes on options. wasn't really clear to me. My question is whether you pay capital gains on the stock, not the option premium, but the stock capital gain, when you buy back a call option?
thanks
Read Answer Asked by joseph on November 30, 2020
Q: Peter and His Wonder Team
This is about Capital Gains Tax and Tax Loss Credits. I have 6 accounts: Canadian Cash, USA Cash; Canadian Tax Free, USA Tax Free; Canadian RIF and USA RIF. In terms of taxation is this just 3 accounts to 2 different currencies? Can I write off a loss from my Canadian Cash with a gain on my USA Cash? With the Tax Free Account is it true that you pay no tax on gains but also get no credit for losses?
Thirdly...With the RIF Account is it true that gains and losses are not matched...you only pay tax on the annual amount that must be withdrawn over the years? Thank you for answering my rookie questions!
Read Answer Asked by Ernest on November 30, 2020
Q: You may or may not know the answer but i am hoping to transfer some of my stocks to my grandkids at some point before i die. (i might as watch them enjoy it while i can). is there a most efficient way to transfer stocks between two individuals? i was under the impression they had to be sold to transfer the funds but i have seen several posts about 'inheriting' shares. i assumed that most of the 'inheriting' was coming from registered retirement accounts or RIFS.

Can you point me to a resource?
Read Answer Asked by kelly on November 26, 2020
Q: Hi Guys, I was thinking of putting this ETF in my TFSA for some monthly income. I was wondering if there would be a withholding tax applied if it is in a TFSA because of the US content. I there is do you know how much? If there is then perhaps this would be more suited in an RRSP. I'm retired and am looking for income. Thanks for your help.

Mike
Read Answer Asked by Michael on November 26, 2020
Q: I am in my early 80's ,have large capital gains and plan to stay invested in equities as my parents lived to over be over 100.
I believe that the capital gains inclusion rate will be increased to 75% as early as December 31,2021 which is 50 years since the capital gains tax originated.
As a result I intend to begin selling the equities with the largest gains with a view of buying a portion of them back after leaving enough in cash to cover the tax.
Can I repurchase the same day or do I have to wait until after the date of settlement?
Read Answer Asked by Terry on November 19, 2020
Q: Hi, if I hold ZDV, VDY or XIC in a TFSA are there any tax implications whatsoever. Do I need to keep track of ACB? Thanks.
Read Answer Asked by Gary on November 17, 2020
Q: Could you provide 5 or 6 names of solid/dividend paying companies that took a hit from tax loss sales in Nov. 2019 timeframe? (if there were any)
Thank you
Read Answer Asked by Delbert on November 10, 2020
Q: Could you suggest 5 or 6 solid/dividend paying companies that may take a hit from tax loss selling? Thank you
Read Answer Asked by Delbert on November 06, 2020
Q: Hey team, I think you misunderstood Jacob’s tax question. He WOULD have to declare his capital gain on his growth stock. He is not excused from this just because he rebuys the same stock shortly thereafter.
Read Answer Asked by James on November 05, 2020
Q: I noticed you said that you have to wait 30 days to rebuy suncor after selling it for tax-loss. Is it the same for declaring profits? If i sell a growth stock for a profit, but rebuy it the next day, do i have to declare it?
Read Answer Asked by Jacob on November 04, 2020
Q: Greetings 5i team,
This question is regarding tax loss selling. I have a major loss on su.to in my Margin account. I want to keep the stock for the long run. My question is is it possible to file tax loss without selling or should i sell and buy back. If so how soon can i buy back?
Thank you
Ravi.
Read Answer Asked by Raveendra on November 03, 2020