Investment Q&A

Q: For those concerned about the proceeds from the DRG.UN disposition, I can advise that TD Direct Investing changed the portion designated as dividends to ROC on Jan. 3rd.

Q: What are the dividend tax credit consequences when I hold inter-listed Canadian stocks paying dividends in USD in an US rather than a Canadian margin account?
Thank you.
Werner

Q: I was on holidays at Christmas so I put a stop loss on a few stocks. Trade Desk which was trading at a low of $256.00 for quite some time for a split second dropped $10 to $246.00 and took out my stock and was right back up at $256.00 again. Would the market maker have dropped that so some lucky guy could get the stock cheap?
A broker I know told me that since I average at the most 30 trades a quarter, Revenue Canada could classify me as not an investor by making so many trades which could cause me to not qualify for the 50% capital gains rule and I would have to pay tax on 100% gains. I put it on forums but I haven't had a response yet. Hopefully you can enlighten me on this.
Nice call on Park Lawn. I get a lot of emails pertaining to the market and one advised me the other day to buy Park Lawn as it was going to break out above $30.00. I already own Park Lawn so nice call from 5i that I got it a lot cheaper some time ago.
Thanks for making my trading easier. Dennis

Q: I am a rookie and do not want trouble with the 'taxman'. Ha!Ha! If I have a loss in my Canadian Cash Account can I apply it to a capital gain in my USA Cash Account? I believe I cannot receive a tax loss in my Tax Free Savings Account. Is that true? Finally my RIF Account...I believe it is a separate entity...I cannot claim losses with other accounts OR within the account itself...I just pay income tax when money is withdrawn. Am I in error here?
Thanks for the clarification!

Q: When is the first day i can sell a stock for a capital gain that will register in 2020 for tax purposes.

Q: What are the tax implications for the spinoff of OTIS and Carrier for Canadians?
i.e. Will they be taxable as income or will the spin-off be eligible under section 86.1 such that the ACB is allocated between the original shares and the spin-offs.

Thanks

Q: Hi 5i,
I have a large capital gain in a Non Registered account that I plan to offset by 'partially' selling one of my holding in a losing energy stock. For tax purposes, if I partially sell my holdings in this energy stock prior to Dec 27th will I be allowed this loss or must I sell all of the shares I own in this company?

Q: There is no 30 Day time limit if you sell at a capital gain in the unregistered account and buy it right away in a tfsa? If you did have a capital loss. Does it make a difference if you bought first in the tfsa and then after sell your shares for a loss in the unregistered account?

Q: The beginning of January I plan to put $6000 in my wife’s TFSA and $ 6000 in my TFSA. The contribution will come from our joint savings account. I plan to buy for each of us 300 shs of VET. In the meantime I will be selling 600 shs of VET in my non registered account. Following this I will put the proceeds from the sale into our savings account. Is this any different from directly contributing the shares in our TFSA ?
My interpretation of this is that it would be a deemed disposition, and I won’t be able to claim a capital loss, but I would be able to claim a capital loss in the first instance above.
I know this is an accounting question, but if you prefer not to answer , maybe one of your subscribers is knowable enough to give an answer.

Q: If one has a capital gain for 2019. To reduce taxes to be paid on this capital gain, if I sell a portion of StockA with a capital loss to negate any capital gain taxes to be paid. Would I be able buy back this portion of Stock A after 30 days without triggering superficial loss rule? Or do I need to sell the full position of StockA to avoid superficial loss rule? Thank you.

Q: Hello 5i team,.
I have MX and TFII in my margin account that I'm thinking of selling to claim the capital loss.
Do you expect these two stock prices to go up significantly in the next 30 days?
Would you advise to buy them back after the 30 days?
Thanks

Q: It appears that this ETF has changed recently as required by the Liberals. Is this a taxable conversion or is there an option to treat this otherwise?

Q: When reporting capital gains/losses on schedule 3 of the income tax return, would you know whether one must report DLR/DLR.U transactions? There would be no gains or losses, after all, when the two are carried out together.

Q: I purchased some GOOS December calls, for now the call are profitable (46 Dec 20) if I let the call expire then I take it the calls are assigned to my margin acct automatically, yes or no. Second question , For tax purposes is my new ACB the cost of the shares plus the premium and
I declare no profit till I sell them OR do I have to pay taxes on the profit now on whatever gain or if a loss take that amount as a deduction for this years taxes. Thanks , Jean

Q: Hi Team,
Can you suggest similar sector/quality stocks to replace the following stocks which I like to do the tax loss selling and would like to stay with the sector !
PD - loss 39%
MX - loss 32%
TCL.a - loss 25%
VET - loss 30%
WFT - loss 15%
Please deduct my credits as needed.
Thank you as always !
Tak

Q: After checking with a CRA employee I understand they rec. only info on non-registered a/c's. In past years & more than once I have taken a small loss & quickly repurchased in a Registered or TFSA a/c. No problems. Worst that can happen they will deny loss.
If it's a huge loss I would not take that chance.

Q: If I own US equities (eg. AAPL) and/or US-based ETFs (eg. VIG), but no other US-based property/assets and do not have any other connection to the US otherwise (eg. real property, employment, Green card, etc.), would I be liable for US estate taxes if my total estate is over $5 million US at my passing, or only if my US-based assets exceed $5 million US? If so, would the tax only apply to my US-based assets, or my entire estate?

If I am liable, is it advisable to try to exit all US positions prior to my passing? How do others handle this situation?

Does the answer change if I have a balance outstanding in an old US retirement account [eg. 403(b) and/or 457(b)] and/or chequing account?

Thank you.

Q: Is there any grief with buying an etf like "bme". I know Canadians can not own US mutual funds , just etf's. What scares me it is called a "trust". What are the implications or possible tax reporting problems.As well do you consider this a decent investment.

Q: Re your answer to Terence that he will not be able to claim his loss on LSPD because he bought them back in ANOTHER account within the 30 day period. The capital loss can be added to the Adjusted Cost Base of the new shares so that he eventually will get the benefit of the loss PROVIDED he bought the new shares in a taxable account. I have at times ignored the 30 day rule when it was beneficial to rebuy shares within the 30 days.

Q: I have invested in all the Brookfield companies, most recently with a purchase of BBU.UN in my TFSA account. I have read that there may be tax withholdings for this investment that I cannot recover. Should I sell BBU.UN that I currently own in my TFSA account and purchase it in my open account?