Investment Q&A

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

Q: Hi. Wondering about what types of investments to put where. How about this:
Non- Registerred Account: Canadian Dividend payers to maximize the dividend tax credit.
Registerred Account: interest bearing instruments, REIT’s, MLP’s etc
TFSA: growth stocks ( Canada and International)
Appreciate your comments.
Thx Frank

Q: Could you tell me if i transferred all of my holdings, eg. Stocks, Etf's from an RSP into a TFSA, if i would take a tax hit? If i did, would it not make sense to do it, thanks?

Q: Further to Peter’s question this morning about passive income earned within a corporation, given the new punitive tax rules that are being implemented, limiting fair taxation to the first $50,000 of income, what stocks should he be switching out of to limit his annual income? He was asking for stocks that did not pay a dividend.

A note to fellow member Peter, which is that you still have to be very careful when realizing capital gains, because they too will be treated as income, just at the 50% inclusion rate. So if you have some dividend income still, and you realize capital gains of $100k in a single year, you’ll still go over the $50,000 threshold. I personally don’t know of a way around it, but the stocks you mentioned already have a preferential tax treatment, so short of removing funds from the corporation and investing outside of it, I don’t see a way around it. I’d be very curious to know how other members are handling this new tax. Any chance of writing an article about this, as I’m sure in your wide membership base, there must be a good number of people affected by this.

Q: Largely predicated on your guidance that the Canadian economy will likely grow at a slower pace - at least over the short term - than its US counterpart, I have filled up my TFSA and RSP with individual US stocks, XEF and VFV, while placing Canadian dividend-paying stocks in my cash account. Can you please comment on the tax implications of placing Canadian .UN stock (eg/ KWH.UN) in my cash account? (I understand these stocks are better placed in a registered account, but I have no room.) Can you also explain how the Foreign Tax Credit works and - in particular - the circumstances under which it can be claimed?

Many thanks,

Maureen

Q: in doing taxes for cap gains and losses in $USF and conversions, can one use the average exchange rate for the year(2017... 1.2986) or does one have to convert individually for each trade?
at the then exch rate?

Q: This is a follow up on my earlier question on tax loss selling for Enbridge:
1) Aqn. I like it but is it really an equivalent of Enbridge? I can see how Trans canada could be, because it is pipe lines. But, I don't think Algonquin has pipelines. So, I imagine you are saying that it is not an exact replacement but close enough. Am I correct?
2) I am not great with calculations and would like to know how you calculate the 21 per cent that you mention. You speak about a high tax rate. What do you consider a high tax rate. It looks like 20 per cent here. Is that right?

thanks again

Q: Hi 5i: Just a suggestion in relation to Elaine’s question about dealing with large embedded capital gains in a taxable account. If you are someone who makes charitable donations anyway, consider giving some of your highest percentage capital gains away by donating the shares instead of cash. For your own tax deduction purposes you get a tax receipt for the full value of the donated shares (capital gain included) but you don’t have to pay the tax on the gain to do it. An organization called CanadaHelps is worth checking out online as a facilitator. Before the New Year I was able to transfer a bunch of my PUR shares to them (after the takeout bid!), specify that I wanted the donation split in 12 different directions, and select the 12 different charities to receive individual donations equivalent to specific numbers of the shares. It was relatively easy for me given all the administrative work they looked after. And I got a bigger tax receipt than I would have if I had sold the shares, paid the tax, and donated the leftovers.

Q: Dividend payments from US stocks like T generate a withholding tax which is not insignificant. Is there a process for getting a refund of this tax under dual taxation with the US?

Q: I understand you can't sell a stock for a Capital Loss and buy it again within 30 Days in any sort of account whether it be Cash, RSP, TFSA.
Can you do the opposite and Buy new shares in RSP first to take position then sell the same companies shares in Cash Account for Capital Loss?

Q: Is there any disadvantage or consequences with having many US investments in my TFSA or RIF.?
Margita