Investment Q&A

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

Q: Hi, Our ACB for LSPD in non Regd account is $32. We have large Capital gains due to BYD conversion. Does it make sense to book capital loss by selling LSPD today and buying back after 30 days. Based on present market conditions and news around COVID-19, do you think it makes sense or there is risk of stock going back higher in 30 days time. Or, i
nstead, doing same exercise with BYD is a better approach. Thanks

Q: From my previous question on owing BIPC in a TFSA you state that it's better to own BIPC in a non registered account because of the dividend tax credit (that I understand)...but is that dividend tax credit really applicable or needed for a TFSA? I currently hold BIP.UN in my TFSA and I'm still trying to find the reason for switching to BIPC. Would it be withholding taxes?

Q: I have owned a large position of BIP.UN and done well, I have some in my TFSA account and some in my RRSP account. For future will BIP.UN and BIPC trade similar in price range and I do not see what dividend BIPC pays. Is BIPC dividend same as BIP.UN. Should I sell all my BIP.UN and buy BIPC. Can you explain tax credit implications.
Thank You
Al - Mississauga

Q: Re the couple who live on their RRIF and wished to "harvest capital losses", I hope they understand that you cannot harvest capital losses in a RRIF. Not sure if they were asking about their RRIF only or other accounts.

Q: Is there a "superficial gains" rule? I am asking as I am trying to determine the most effective ways to make use of capital losses. Would "washing" some existing gains in a tax year by selling and then immediately rebuying the up security be an effective way to use capital losses?

Q: The questions on this security seem to never end but why is it better to own BIPC in a TFSA than BIP.UN?

Q: Dear 5i
A couple weeks ago i sold an ETF for a loss . A few days ago i inadvertently bought the same ETF back though not the same dollar value . In this situation have i lost the tax loss claim for accounting purposes and if so is there any way of getting it back ie re selling again the same ETF i just purchased a few days ago ?
Also i`ve opened up 3 RIF accounts ( mine, my wifes and her spousal ) .
I plan on transferring our RRSP monies from each of our RRSP accounts into the corresponding RIF accounts but only for what we need to live on for that year (for tax reasons ). This amounts to about $16k per account .
My question is how should the $16k per RIF account be invested considering that about $4k will come out from each account every 3 months (staggered withdrawals ) ? The bulk of the investments will still be in RRSP`s and it is these accounts that can be fully invested ( when the time comes re the virus ) .
Thanks
Bill C.

Q: Are currency exchanges using a DLR/DLR.U transaction to be reported on one's income tax return? The transaction will usually result in a small loss when the commission is factored in. (It would seem odd to be able to claim this loss, when you can't write off the fee for exchanging dollars at the bank!)

Q: Held in non registered account is the 5% Dividend a clean Canadian dividend qualified for tax credit or another nightmare at tax time k-1 form , 1135 form …. ETC

Q: I have a loss on BIP but I like the fund. It would seem wise to sell the BIP and buy BIPC. Would this violate the capital gains loss?

Q: Hi Folks,
I'm looking to harvest a loss in this account which has a June 30 year end. I have substantial losses in both named companies. In your opinion is this a good plan? Should I re-purchase either or both in 30 days?
Thanks for your help.
Dennis

Q: Is the receipt of BIPC a stock dividend equal to $49.29 per share?

If all the BIPC shares are converted into BIP.UN is the only tax effect an addition to the Adjusted Cost Base equal to the above stock dividend?

Q: Please clarify, ACB calculations.
# 1 One needs to consider all trades registered and non registered accounts, yes or no.
# 2 I sell in a non registered acct. at loss. I buy in less than 30 days in registered or non registered acct,
The loss is not allowed, yes or no.
# 3. However, in question # 2, the buy trade must be entered to get my new ACB regardless if it was done in a registered or non registered acct. yes or no.
# 4. The 30 day rule is calculated from the trade date and not the settlement date. Yes or no.

Thank you.

Q: Hello,
I have a question about the potential need for a Canadian citizen to fie a USA tax return, stemming from their investment in certain assets. I hold both BPY.UN and EPD in various registered accounts (RRSP, LIRA & TFSA). Subsequent to filing my 2019 Canadian tax return, I am now receiving documentation from both Brookfield and Enterprise Product Partners L.P. that would appear to indicate there might be some desire on the part of the U.S. government that I file a Schedule K-1 form, related to income I received from these two entities, during 2019. My questions are:

As a Canadian citizen who holds these investments within my registered accounts, am I in any way compelled to file a Schedule K-1 and/or any associated USA Federal or State tax returns?
Whether compelled to file them or not, is there anything potentially to be gained on my part, if I were to file the U.S.A. federal and any state specific tax returns? (The recovery of any withholding taxes on the income I received in 2019, for instance)

Thank you!

Q: Peter; I’m debating taking some tax losses on ipl and key and riding out the 30 days in bip.un and sru.un. Please comment. Thanks. Rod

Q: Under what circumstance would you consider swapping one BIPC share for one BIP.UN, assuming the ongoing dividend and unit distribution payout are identical.

Would it be just the tax consequence on the future sale of the share or unit, and perhaps the tax treatment of the dividend and unit distribution payout? Thanks.