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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: 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
Read Answer Asked by joseph on February 06, 2019
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.
Read Answer Asked by Thomas on January 27, 2019
Q: Can you confirm the reason for holding US stocks in registered accounts? When you say Registered accounts are you including TFSA's? Thanks
Read Answer Asked by Ian on January 16, 2019
Q: Recently I have been in a good philosophical question with a close friend regarding the Canadian Income Tax system. Essentially, the question is why are there so my deductions/exemptions in our current Canadian Income Tax system? Is this something
our leaders came up with in order to promote a strong economy? The flip side of the coin is that I am wondering if this system is being abused and individuals are avoiding their fair share of taxes...both federally and provincially. What is your take on this question?
thanks,
Richard
Read Answer Asked by Richard on January 15, 2019
Q: Morning good 5i people,

My question is on calculating capital gains. I have the same stock in both a non-registered (cash) account and an RRSP, bought at different times and at different prices. To calculate the adjusted cost base for when I sell the stock from the cash account, am I supposed to use the average of the 2 acquisition prices, or just the price from the cash side? In other words, do I use the purchase price of the RRSP stock in the calculation of the ACB?
Thanks,
Mike
Read Answer Asked by Mike on January 08, 2019
Q: Good day and best wishes to 5i team for 2019! Regarding the swap arrangement for these etfs in lue of dividend distributions. If for example they had a 3% yield.and say I owned 1000 shares at a book value of 10$per.share. would the distribution show up as more shares similar to a mutual fund. So if I then sold after distribution.i would have a capital gain of say 300$and no concerns regarding dividend? And second question do you see some good interest in this as a way to shelter income or would you more lean towards say vcns or vbal? Hope I do not confuse. Tks Larry
Read Answer Asked by Larry on January 08, 2019
Q: I am still not clear about the requirement to pay tax installments to CRA.
I have one owing for 2018. Does your answer mean that if I do not pay that installment then in April I will be levied an interest charge?
thanks,
Richard
Read Answer Asked by Richard on January 08, 2019
Q: I have a question regarding capital gain taxes that hopefully you can answer. Let’s say that in 2018 I sold shares of two separate companies, one resulting in a capital gain and the other in a capital loss (in a non-registered account of course). Does Revenue Canada oblige me to first use the loss to offset gains from the same year? I ask because I am retired and not yet drawing any pension or RRIF income. My non-registered investment income including the capital gain in 2018 is below the basic personal deduction, so I should effectively pay no income tax whether I claim the loss or not. I would like to carry the capital loss forward to use it in a future year when I will have a higher taxable income, rather than apply it against my 2018 capital gain which will not save me anything in taxes.
Read Answer Asked by Steven on January 07, 2019
Q: Hi Team: Its the start of a new TFSA season. If I transfer in kind from a non registered Account into my TFSA, can I report the Loss? I purchased this stock in April 2018 @ $8.84 and it is now trading at $5.21
Read Answer Asked by Ken on January 07, 2019
Q: Kind people of 5i - the other day someone wrote in a question "I can move stocks in kind from my rrsp to my tfsa..." Startled I was. Is this correct and can one not yet using or not yet maximizing their tfsa simply transfer shares in kind from their rrsp to either a new or an existing but not maxed out tfsa and thereafter use the resulting monies withdrawn from their tfsa without tax. Or am I misunderstanding something such as the transfer from the rrsp to tfsa would still have a 30% holdback and the need to declare the share value at date of transfer as income in the year of transfer. A clear understanding of this issue is what I'm seeking with thanks.
Read Answer Asked by Ken on January 04, 2019
Q: Hi All:

Hope you all have been enjoying the X'mas season. Happy 2019 to each one of you!

I noticed the cost per unit on the monthly statement changes sometimes for the ETFs I own. I own another one other than ZBK. I wonder what makes it change? When I sell them should I use the cost per unit on the monthly statement as ACB? If I sell part of it that I should use that month cost per unit to calculate the ACB?

Thank you.

Louisa
Read Answer Asked by LOUISA on December 28, 2018
Q: for us residents and taxes, does trade date or settlement date matter to enter into 2018 tax return, where in Canada settlement must fall within 2018. Thanks
Read Answer Asked by george on December 27, 2018
Q: I have been told that the max. contribution to a TFSA has been increased to $6000.00
Can you confirm that? H.
Read Answer Asked by Harry on December 24, 2018