Investment Q&A

Q: I hold this in my Cash account (for income) and it is underwater (has been for a while). In your opinion, would I be better off to harvest the loss and purchase 2 or 3 individual top quality preferred shares? If so, can you provide some specific suggestions (I am overweight financials). I assume I would have to wait 30 days to purchase the individual shares to avoid the superficial loss?
Please deduct credits as appropriate.
Thank you.

Q: I have most of my wealth in an unregistered account and would like to invest in the safety of Bonds or GIC's but I don't like that they get fully taxed. Are there any ETF's or funds you would suggest that use derivatives or some other wizardy to turn Bond/GIC income into dividends so they are taxed more favorably? All without giving the advantage back through high fees or MER?

Q: I am a Canadian and have built up a good position in BPY.UN during this sell-off. Their website says their distributions are to dividends but Flow Thru (income) and taxed in the hands of shareholders.

They supposedly issue T5013s.

Is it better to hold in RRSP/TFSA or non-registered?

If I am borrowing to invest in a non-registered, do you think the interest can be written off taxes like buying other securities can be?

Thank you
Bruce

Q: Hi there,
Say one has 200 shares of company ABC. They sell 100 shares and 15 days later sell the remaining 100 shares. Can one repurchase the first 100 shares sold in thirty days without loosing the capital loss?
Tx.

Q: Is PHYS:CA best held in a TFSA or RRSP, advantages or disadvantages please?
Thank you

Q: I recently sold CDZ, XEI and ZDV for a tax loss and would like to re-purchased equivalent ETF's. Can you recommend appropriate replacements?

Q: I have CGL.C in my non rrsp account and do have a capital gain so I am thinking of selling this as I do have some capital loss that I can use it to offset the gain. I know you also mentioned that PHYS also has lower fees than CGL.C so would this be a good switch?
Thanks

Q: If I buy say BCE preferred within the 30 days of selling the BCE common, do I negate my capital loss? Seems like a good place to stick the money before rebuying.

Q: There was a restructuring of Loblaws/G Weston back a while ago - can you please explain the changes. I held L and received WN shares. Can you please also direct me to the details for calculating ACB related to this. On a related note, what are the prospects for WN in the current environment - should I top up my WN or sell and buy more L?
Thank you.

Q: I sold some VBAL:CA at a loss to realize some tax losses and would like to repurchase this ETF at a lower entry point. Can I purchase a comparable ETF from another company like XBAL prior to 30 days, or would that be considered a superficial loss for tax purposes? Similarly, would purchasing a different asset mix product from the same company e.g. VGRO:CA or VCNS:CA be considered a superficial loss?

Q: Hi 5i Team. Question(s) for you on the ETF HPR as it relates to taxation. This summary was taken from my recently received T3. On the T3 summary in the first column it indicates, on a monthly basis a total distribution of $352.14. The $352.24 is broken down as follows: 2nd column on the T3, indicates a return of capital or foreign tax paid of $18.81. The 3rd column on the T3 then states the actual non-elig.div or actual elig.div or foreign tax paid of $344.63. Should I assume that the $344.63 is actual elig. div for the Canadian Dividend Tax credit? Please deduct number credits as required. Thx Steve.

Q: Further to my question of April 9 regarding withholding tax: I forgot to inquire of the following co's. if they also charge
NVS, PXSP, V and SDIV.
Thanks

Q: If I buy a stock at $10.00/share and it goes down to $5.00/share, I then sell the stock for tax loss of $5.00/share. I wait the 30 days and buy the stock again, but now the stock has gone back up to $10.00/share. Can you tell me what the benefit is? How much do I gain or lose in this scenario?

Q: Similar to the question that the gentleman Guy asked from April 8th, is it the same for an RRSP to transfer in kind to a TFSA? Is it allowed?

Q: Not a Question, just some feedback on the strategy of tax loss selling.
I crystallized some losses 24 Mar to the tune of 33k (gasp)!
Due to these wild markets, those four stocks are now collectively up almost 10k at todays close (another gasp…did I blink?)!
However, the ETF that I purchased 24 Mar with the proceeds from the sale of those stocks, and will hold for (at least) 30 days, is also up more than 5k. Even though things have moved more quickly than we would have thought possible, I am happy with the way things have turned out so far:
After 30 days, I will have a tax loss of 33k that can be carried forward indefinitely which brings a good deal of flexibility to my planning (how many of us have resisted selling a stock in the past because we don't want to pay the capital gains tax?). I will also hold a credible ETF that pays a monthly dividend that I may chose to sell and repurchase the original stocks, or not.
Before repurchasing, I will probably ask 5i if it is a good time to get back into those four companies.
Thanks again for all of your good work
Publish if you wish

Q: I am being charged with holding tax by my brokerage on foreign dividends in my US$ RRIF. [TOT] [Is that recoverable?

Q: I have a position in BIP.UN in my Cash account at a loss and a small position on BIPC in the same account. If I sell BIP.UN and buy BIPC would the loss be considered a superficial loss for tax purposes?

Q: Read today in G & M that I could transfer my RRIF in kind to TFSA. My wife and I would not need the funds from the dividends we receive. We are under water in value but have not sold any stocks. Our amounts would be below TFSA amount overall 69,500. for each of us.Would there be tax implications.Would banks charge to do this. Could we top up to$69,500 this year if we have cash becoming available. Tks 5i take as many questions points away as required for this answer.

Q: I am a Canadian citizen/resident. I use my non-registered investment accounts to hold dividend-paying Canadian companies as well as U.S. companies that pay no/small dividends. I use RSPs for U.S. companies that pay larger dividends. I use TFSAs to hold securities such as Canadian REITs and companies with unusual dividends such as BEP.UN and BIP.UN. My understanding is that BIPC is essentially “equivalent” to BIP.UN, but that BIPC will pay fully eligible dividends for which T5s will be issued (not sure if the BIPC distribution will be paid in CA$ or US$). Here are my questions: (a) given the above considerations, would it make sense for me to sell BIP.UN/BIPC within my TFSA, using the cash to acquire more of Canadian REITS and/or similar types of securities (with unusual dividends), and to reacquire the same value (of BIP.UN/BIPC shares sold) through purchase of shares of BIPC in a non-registered account? And (b) do you know whether it is known yet in which currency the future BIPC distributions will be paid?

Ted

Q: Hi,
I received shares of BIPC as a spinoff from BIP.UN. Can you five some information about the new company? How similar or different are they from each other? I am holding it in RRSP. Should I sell one and acquired the other for equivalent $ amount.
Thanks