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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Given the current state of the Canadian market, I have filled both registered accounts with US/international equities. Provided a US/international equity doesn't pay a dividend, are there any negative tax consequences from holding these shares in a non-registered account? Thank you.
Read Answer Asked by Maureen on October 23, 2018
Q: I recently asked a question about tax loss selling in the US and Canada that obviously wasn’t clear enough.
I wanted to know how tax loss selling in the US for an American investor compares to Canada for a Canadian investor. How similar are the tax implications, rules etc.?
Thanks, Hugh
Read Answer Asked by Hugh on October 22, 2018
Q: Bought option Oct 19 $12 ENDP to close a cvered call sold in July for a loss on Oct 20. . Can we purchase option Dec 19 $ 17 ENDP on Oct 24 or does the 30 day rule apply for all options of the same company.
Thanks
Thomas
Read Answer Asked by Thomas on October 22, 2018
Q: Could you compare and contrast the benefits and regulatory considerations of tax loss selling in the US relative to Canada? Is the form and strategy similar or quite different and to what extent?
(This request is for broad brush information not detail)
Thank you, Hugh
Read Answer Asked by Hugh on October 22, 2018
Q: Hello 5I.
I have a question about warrants and the tax loss. Are the Greenspace warrants and the greenspace common stock consider the same entity for tax purposes? Meaning could I see one and purchase the other on the same day and get a loss or would it be forfeited?
Thanks
Read Answer Asked by Tyler on October 19, 2018
Q: Are these etf's better to be held in registered accounts for tax purposes. Since there will be ROC when sold, how difficult is it to calculate or are tax forms supplied with that info upon sale. I'd like yo add it to my non registered account to collect the nice dividends but worried about how to handle after a sale. Thanks
Read Answer Asked by Luca on October 17, 2018
Q: Before proceed with a purchase would you confirm for me that a US stock or ETF may be purchased in a Canadian RRSP without having to file annual tax information or remittances to the USA. I know that a US stock or ETF purchased in a cash or TFSA is subject to annual filings. As a long time subscriber, thank you for your service.
Read Answer Asked by Doug on October 17, 2018
Q: I am considering holding VFV and XQQ in my personal unregistered accounts because they produce dividends. I could borrow money to invest in them and write off the interest. On the other hand, would it make sense to put HXS and HXQ in my passive corporation (no active income) as these two produce only capital gains and no distributions? Is there a big difference in dividends earned in a passive corp vs
personally? Also all of these will not count towards the T1135 limit. Any thoughts?
Read Answer Asked by Terry on October 15, 2018
Q: Hello 5I.
I just was wondering how best to handle tax loss selling season? Do I wait till late november early december to buy some "losers" or do you strike when it falls into my range. I am just tentative as I don't want to buy way to early if a stock is probably going to drop further (best guess).. Dollarama for example..
Thanks
Read Answer Asked by Tyler on October 09, 2018
Q: Hi All at 5i! A quick question about tax loss selling. When would it be ideal to sell a stock at a loss to offset gains, considering that I want to buy the stock back. Would now be good? Or wait until Nov? Dec? Also, I own CBO at a loss at the moment. Considering that interest rates are going up, should I sell it now at a loss( to offset capital gains) and buy it back later? Cheers, Tamara
Read Answer Asked by Tamara on October 04, 2018
Q: Gentlemen,
About the 30 days waiting to re-buy question.
I own stock X on my margin account, I have a loss this stock.
If I will buy stock X on a registered account.
And after I will sell stock X on my margin account
The loss can be claimed in this situation or I have also wait 30 days before selling ?
Thanks
BR
Read Answer Asked by Djamel on October 03, 2018
Q: If i sell rht for a tax loss now in a non registered acct, can i still buy it in my registered acct without waiting 30 days
Read Answer Asked by george on October 02, 2018
Q: These ETF's are TRI or Total Return Index ETF's. They pay out no distributions of dividends and no ROC. I'm guessing that they reinvest all the payouts and subtract the fees. Since they do this would you expect that there is no CRA paperwork to complete unless you sell units which would trigger capital gains. What is your opinion of holding these in a passive corp as I think Canadian dividends would be taxed higher in the passive corp and these only produce capital gains? I am looking at the HXQ (Nasdaq 100) so I do not have to complete the T1135 paperwork and stay in CDN $.
Read Answer Asked by Terry on October 01, 2018
Q: My question involves taxation of these two ETFs at death as a Canadian citizen. VSP holds the US domiciled Vanguard S&P 500 ETF whereas the BMO ZUE invests in the Canadian domiciled ZSP which holds the US equities directly. Once a Canadian individual crosses certain net worth thresholds they are subject to double taxation from both the US and Canada on their US holdings at death. Is the structure of VSP put an individual at more risk? Can you or any members comment?
Read Answer Asked by Gary on October 01, 2018
Q: Tax loss selling

Would you please clarify the 30 day wait period before repurchasing shares sold for tax loss purchases. I sold shares on Aug 31 which closed on Sept. 5. Which day can I buy them back? Thanks for your great service.
Read Answer Asked by Ric on October 01, 2018
Q: Dear 5i
It was great seeing you at the Money Show.
I have been a member for 6 months and love your service. I would like clarification on something that I have read regarding very active investment accounts that are TFSAs but perhaps it also applies to RRSPs. Although I am not currently an extremely active investor in terms of number of trades placed, and it doesn't really suit my temperament, I have read that the CRA has designated some of these very active accounts as a "business" and removed the tax shelter from any gains realized within these accounts. What is the actual rule regarding this? What I read was very ambiguous and not quantified. Thanks so much for your help.
Kind regards,
Murray
Read Answer Asked by Murray on September 27, 2018
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