Investment Q&A

Q: are the dividend from the above stocks taxed at 50% income or full income ? is there a change in the new federal budget so all dividends will be 100 % taxable

Q: Concerning Canadian Cies (like FFH or TRP ), paying dividends, but getting a significant part of their revenues from the US or from foreign Cies that they own : Do we get the whole tax credit on their dividends ? Or is it only in proportion of the Canadian portion of the Cie ?

Q: Looks like Horizon swap indexes will have a limited life expectancy.
From budget:
"Improve existing rules meant to prevent taxpayers from using derivative transactions to convert fully taxable ordinary income into capital gains taxed at a lower rate."
Comments?

Q: Does the new digital subscription tax credit apply to our 5i newsletter fees?

Q: Hi, if I hold either of these stocks in a TFSA would they be exempt from any U.S. or foreign tax reporting? From a tax reporting perspective would it be the same as if holding them in an RRSP? Thanks.

Q: Time for tax loss selling? How much chance is there of this stock going higher in a month? Related to this is , at this point, is there any sense in tax loss selling right now, rather than holding until the end of they year, collect the dividend and then sell, if it is still down.
thanks

Q: I hold this and some others in my US rsp account and they withhold taxes on the dividends. Do you know why and if I can get exempted? Thanks

Q: I have rec'd a class action settlement amount from Agnico. Any idea how I report this on my taxes? Tx.

Q: In 2018, Metro bought Jean Coutu. I would have preferred to convert a part of my PJc shares into Metro shares in order to defer the capital gain as long as possible. However, I have never received the document offering this choice from Disnat.
I contacted Disnat and the customer service told me that the document with which we had to sign our choice had been sent. I then consulted 2 colleagues who use the Disnat platform and they also confirm that they did not receive this document. The tax bill is important.
Are there any recourse or action to take?
Thank you

Q: Hi,
I would like to read more or get some information on how to
establish strategies to minimize my tax burden and
optimize the disbursement of my investments. Any suggestions on where to start?

Q: If the upcoming federal budget changes the capital gains inclusion rate, would the new inclusion rate apply retroactively to realizations made before the budget announcement in the current tax year? Thank you.

Q: I believe you prefer to have growth equities in one's TFSA. For someone in retirement would it instead be a good plan for a dividend growth investor to use the TFSA to produce regular tax-free dividends for a retiree? If one already has an open account made up of dividend paying stocks, the grossing up of those dividends can potentially create a clawback on your OAS payments. In my opinion, moving as many of those stocks to the TFSA as possible would help reduce this issue. Would you agree?

Thanks.
Jim

Q: I seem to never take profits in my non-registered account. I currently have an unrealized gain of +69.48% on OTEX. Do you think it's wise to take all or some profits? (I do have losses in 2018.) If I sell OTEX, what is are some good growth stocks with solid financials and good growth prospects. (I happily own CSU in may TFSA.)

Q: A person diligently saves and invests, and is now in retirement. He has a diversified portfolio. He has maxed out TFSA contributions every year. He has a few hundred thousand in an RRSP, which holds good solid US dividend paying stocks. He also has a few hundred thousand in a non-registered account containing a diversified mix of good Canadian dividend paying stocks. He doesn't have a company pension. He does receive CPP and OAS.

He decides to open a RRIF account early (before age 71) and begin taking at least the minimum annual RRIF withdrawals. He wants to take the withdrawals as "in kind" transfers. (He may sell some stocks to raise the cash to pay the withholding tax, if necessary.) He doesn't need the withdrawal amounts as cash to live on so he wants to keep the withdrawal amounts invested in the stock market, hence the in-kind transfers.

The question is: what to do with the terrific US companies in the RRSP that will be converted to a RRIF, and will slowly need to be withdrawn? To transfer the US stocks in-kind to the non-registered account, means that the US dividend income will now be classified as ordinary income, which will be taxed at a higher rate, and there will be a US withholding tax of 15% on the US dividend income. Is one of the options to keep only low or no dividend paying growth stocks in the non-registered account?

It doesn’t seem to entirely make sense to sell the US stocks and start buying more Canadian stocks. If this were done, eventually the portfolio would become too concentrated in Canadian stocks.

What is the best and most tax efficient strategy for this senior?

Q: I know the deadline for tax "loss" selling is late December, but I'm not sure about the date for stock "gain" selling in regards to 2018 tax purposes. Is it the same or a later date?

thanks,
Paul

Q: In my usa dollar rrsp account I would like to sell some of the holdings (all funds received will remain in the account) . I will re-purchase 2 of the same stocks in the future. What will the tax consequences be if the purchase is made prior to 30 days? Thank you for your time. jane

Q: Hi,
I have a spousal RRSP and a Non-spousal RRSP account. The spousal account has not received contributions for over 10 years and will not be used in the future. I was thinking to combine the spousal RRSP and the non-spousal RRSP accounts. After the combination of the two accounts, the account would be a 'spousal RRSP'. Would there be any tax implications or any other reason I need to take into consideration prior to combining my two accounts? thanks,

Q: Can I please get your thoughts on this company. I see that the founder of TIO Networks is prominently involved so it caught my attention.

Thanks,

Q: Hello 5i,
Let me say first of all that I thank you for venturing out beyond simply stock analysis and providing many of us with answers and advice to broader financial questions. This may not even be in your mandate. But, it is certainly appreciated.
Following the good words is such a question:). I have always loved making what looks like free money on dividends. But, I have been wondering lately whether I might be better off moving to a capital gains strategy, instead. I am only at the beginning of this inquiry and wondered whether you might be able to steer me in the right direction.

I have been looking at swap based etf's as one possible way of doing this. Would this be the best way? what recommendations might you make?
I also don't know quite know where to start in determining whether this would be a better strategy for me. I am wondering if in your portfolio review whether you would from time to time, look at the tax consequences, as well as the asset allocaton?

thanks as always

Q: I have a bunch of shares in a computer share account. If I transfer those shares into another broker, would there be any tax consequences? Any idea how the average buy price should be calculated if I transfered some but not all the shares? If no tax consequences, Would taxes only be generated if transferring to an rrsp or tfsa broker account?

Thanks for the great service.