Investment Q&A

Q: Re: Tax Loss Selling. I understand that a loss counts if you wait 30 days before repurchasing. However, what if you repurchased in a different account in less than 30 days. Who the loss hold up? Thx Frank

Q: The Nov.19 response to the tax treatment of GIC interest question is not quite accurate.
Most interest received is treated on a cash basis, so on a 1 year GIC a holder must only wait for the issuer's T5.
As for a COMPOUND interest GIC beyond one year, the second part of your response would apply, except it is the onus of the issuer to do the accounting and issue T5s.
See CRA link:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/completing-slips-summaries/financial-slips-summaries/return-investment-income-t5/accrued-interest/investment-contracts/what-investment-contract.html

Q: I know you have recommended growth stocks in a tfsa account
For tax reasons, what about fixed
Income portion in the tfsa and
Dividend and growth in a investment account for the same reason. I review the previous questions and couldn’t find anything
Thanks for the help
Sam

Q: Is tax loss selling strictly a Canadian phenomenon due to tax laws or is it a strategy available in the US as well?

Q: My question is on tax treatment of GIC interest.
Is the interest on a GIC reported only in the year the interest is received; or is the interest pro-rated to that portion allocated to the calendar year, even if not received in that year.
Example - a 1 year annual GIC bought in say July 1, 2018, but not maturing until July 1, 2019. Is the interest to be reported on the 2018 tax filing zero, or is it a half year's worth of interest, even though not yet received in 2018?

Q: If I bought Facebook today in my TSFA, but sold the shares (at a loss) in my taxable cash account tomorrow, would I be able to reap the tax loss in my cash account?

Q: If I sell a stock before year end with, for example, a capital loss of $5000 and have no offsetting capital gains how much of the capital loss can be deducted from my total income for the year ? Thanks, Joe

Q: You had mentioned in an earlier question that DGRO would be needed to be on form 1135. If DGRO was held in a RSP is this still the case?

Q: I have taken a loss on shares which I own of the Stars Group (TSG) in my US investment account. If I sell these shares, and then immediately buy the Stars Group (TSGI) shares for my Canadian investment account, am I still allowed to deduct my tax loss from my US account? In other words, are the US shares (TSG) and the Canadian shares (TSGI) considered unique for the purpose of tax deduction on a loss? Thank you.

Q: A number of members have asked about selling losing stocks to claim the loss and then buying back the same stock after thirty days possibly at the same price. It occurred to me that this could be counterproductive unless I am misunderstanding the impact of this maneuver. For instance, let's say I bought ABC at $100 and its value drops to $80, and I sell ABC to claim the $20 tax loss and, after 30 days buy ABC again at $80 and, sometime in the future sell it at my initial $100 price to gain $20. It seems to me, unless my tax bracket has shrunk substantially, that the tax recovered initially will be paid back on the second sale. Isn't that a losing proposition because one would also have incurred two bank charges on the way? What's the point; am I missing something?

Q: Hi,
In what order would you choose the listed companies to sell for tax loss harvesting.
And would you hesitate to re-purchase any of these in 30 days?
And would now be a good time to sell them? Or would it be better to wait a week or two.
Thanks,
Mike

Q: when is the last day for tax loss selling

Q: Hello, in your response to Arzoo's question regarding international holdings better held in RRSP, you say that generally International companies in an RRSP will not have dividend withholding taxes. I have MDT in my RRSP, and there is a withholding taxes of 20%. I have phoned my online broker about this, and they told me that if a company's main address is outside of Canada / USA (Medtronic is based in Dublin, Ireland) then there will be a 20% taxes. And this even if the company trades on the NYSE. They told me that the RRSP tax treaty between Canada and the US applys only to US domiciliated companies. Do you agree with that? Thanks, Gervais

Q: Greetings,
I am specifically interested in finding out about NWH & BIP but as a general "rule of thumb", are international holdings better held in RRSP accounts irrespective of them being listed on TSX?

Q: I have capital gains for the year and I am looking at selling the losers to help reduce the tax hit. I have a loss on TSGI and I am wondering if/when I should sell. I like the company and would want to replace the stock after the 30 day period. Given the next earnings report is Nov 7 is it better to sell before or after that date or is timing even worth considering?
Thanks
Mike

Q: Good morning 5i,
My question concerns tax loss selling. If half a position was sold, say, roughly a month ago, I would be able to purchase the stock again today. But, say if I decided to sell the other half of the position today, would I have to wait another thirty days before buying anything back? Or, could I buy the original half back, now.
thanks

Q: Good morning
My wife and are both under age 65. Each have an RRSP and my wife has a spousal as well.
She has the higher income.
Should we withdraw from the Spousal RRSP can I claim it on my Taxes as I have the lower income?
Thank you
Mike

Q: Hello .. I hold a foreign dividend etf in my cash account. Will the foreign tax paid increase my cost base or is it just the cost or diversification. Best regards gary

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.

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