Investment Q&A

Q: I am down 60% on SGY but would like to keep it because in a recovery, I think it would be a good one to have. However, I need some capital losses to offset some capital gains. I don't want to sell it and wait 30 days to buy it back because it may move up during that time. To avoid the 30 day waiting period and still get some capital loss, could I buy more share now and then sell half in a few days? The loss would not be as high because of the adjusted ACB but it would work okay for me. Would this action attract the 'superficial loss' rule or is this a way around it?

Q: I have a question about portfolio composition. Am 3 years away from converting RSP to RRIF. Live comfortably from dividends, CPP etc.. RSP and cash accounts are equal size , concentrated,and hold banks, REITS, pipelines, utilities ( whose decline does not worry me as long as dividends remain, actually good buying opportunity). My TFSA is 3% of total portfolio and is my ' fun money" trading around many of your growth portfolio stocks.
I have cash available in both RSP and cash accounts and wish to buy smaller cap high dividend paying stocks for more return (and risk) potential. Targeting 10% allocation total cash/RSP value. So, where should I hold these stocks.....RSP or cash or both? RSP will give me 3 years tax deferral on gains ( which will be then taxed at high rate on withdrawal) or cash account with more immediate (but lower) taxes.
Any other advice would be appreciated.
DEREK

Q: Hi 5i Team,
Is it safe to assume that holding RY in US$ doesn’t make it 'foreign property' for tax reporting purposes?
Thanks as usual for your help.
Molly

Q: Good Morning Peter and Team
From a tax perspective are ALA.R and ALA considered distinct and separate equities with respect to the 30 day rule? Could I sell ALA.R at a taxable capital loss and then acquire ALA within 30 days?
Thanks for your great service.
Don

Q: In a reply to Aubrey on Tuesday you recommended crystallizing a loss in SPE and buying VET for the tax benefit. I hold SPE shares at a cost of $9.03, but I totally fail to see any tax benefit in selling SPE and buying VET. Why not just wait for the share conversion a 0.1476 per SPE share? Please explain the tax benefit of selling SPE at a loss.

Q: Hi
I need to get smarter about regulations. If I were to move $5.5k from a non- Registerred Account to a TFSA could I simply transfer shares? Or must I sell, raise cash, move cash, buy back in TFSA account?
Thx Frank

Q: I am wondering if there is any withholding tax, or other tax consequences, to holding BPY.UN in a TFSA. What is your opinion on the company for an income investor seeking income growth.

Q: I hold this stock on the Canadian side of my portfolio in Canadian $
TD in their tax package has listed it as a US holding
When I bought originally ( on 5i recommendation in 2015? ) I thought it was a Canadian stock
Td has said because it's incorporated in US it's considered a foreign holding although the headquarters is in Canada
Is this correct? That it has to be listed on the T1135
Form ?
Appreciate your help
Ty

Q: What are the tax implications of buying US REITs in a non registered account?

Q: I took a loss on KWH.UN in 2017 ( one of very few losses on 5i recommendations!) . Is the Return of Capital reported on the Crius T3 added or deducted from the Cost Basis? Thanks!

Q: In the question asked by Marco on April 4, "If I sell a stock in a TFSA....",
I'm pretty sure you mean "net loss", not "not loss" in your answer, but please confirm. I have thinking about this lately re PLI now in a non registered account.
Many Thanks.

Gerry

Q: If I sell at a loss in a TFSA do I need to wait 30 days to repurchase even though I cannot claim a tax loss?

Q: Hello -

Even though these two ETF's trade on the TSX, there are foreign companies within their respective portfolios, For this reason, would ownership of these ETF's in open accounts count towards the $100,000 of foreign property that one needs to disclose?

Thanks.
Jim

Q: Further to Andrzej question, net capital loss means that the 50% reduction has already been applied, so his gross capital losses are $111,000, which means that his taxable amount for 2017 is $8,000 (($127,000 - $111,000)*50%). On the tax return, the net capital loss carry-forward is reported separately from the current year gain as a deduction from net income to arrive at taxable income.

Q: Hi 5i

In 2017 I sold everything in my RBC margin account, and I have made Totals Gain of $127,000 as per RBC Direct investing statement for 2017.
I have also Unused Net Capital Losses from other years of $55,500.

Please tell me how much maximum of my Unused Net Capital Losses from other years of $55,500 can I use to offset my gains in 2017 income tax return.
Andrew.

Q: HXS is a swap based ETF and VFV has a traditional ETF structure.
If these are held in a non-registered account I understand that the VFV
adjusted cost base likely changes every Year due to distributions and
creates "tax tracking" paperwork. Am I correct in assuming the adjusted
cost base base of HXS will not change every Year because there are
no distributions and hence "no tax tracking" paperwork?
I essentially want to buy HXS and hold for the long term and
not have to concern myself with annual changes to ACB
usually associated with ETF's.

thanks in advance

Q: if i purchase a stock and sell it for a profit is the 30 day rule to repurchase in effect?

Q: RE the 30 day rule. If I sell a stock in my margin account, can I buy it back same day in my TFSA and still claim loss? If not can I purchase it in my TFSA first then sell it from my margin account? Thanks James

Q: I'd like to understand the taxing of distributions/Dividends better

For example CAD dividends receive the dividend tax credit. But other distributions are taxed as interest, others maybe capital gains? like AW income fund. REITs etc

Could you outline the different types of taxation that can happen for cash paid out from a publicly traded canadian security, AND how to distinguish what type of distribution a certain security makes.

Q: With re balancing in my cash account I have a capital gain of $25,000 in 2018. If I were to sell my CGX, ENB and GUD I would have a loss of $14,000. My thinking is that this loss would offset the capital gains.

I intend to re buy these 3 stocks after the 30 day period,

Does this make sense?

Thank you

Sincerely

Mike