Investment Q&A

Q: Can you please discuss the tax consequences of placing VE in a TSFA, RSP and non-registered account? Thank you.

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

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

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

Q: I would like to purchase this however I understand US limited partnerships are treated a certain way by CRA. What is the best type of account for this investment to be held in by a Canadian for? Thank you. Bill

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.

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

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.

Q: Regarding Bob's question on moving stocks in kind from an RRSP to a TFSA , there would be a tax implication when the stocks come out of the RRSP would there not?

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

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

Q: Considering selling vermilion to capture the tax loss and I realize today is the last day. If I was to sell it today would I still qualify for the debit and that was just declared? In other words is it the sell date or the settlement date what qualifies for ownership of the stock for dividend purposes.

Q: Which company would you recommend for a proxy to SLF tax loss selling? IAG or GWO? I dont like MFC because they cut their dividend in 2008.
Thanks

Q: I have been told that the max. contribution to a TFSA has been increased to $6000.00
Can you confirm that? H.

Q: Quick comment on tax-loss selling. It is my understanding that if you have a net loss this year, you can also use this on PREVIOUS 5 years where you had gains. Many may now be in this position. And some like me may also have had higher earnings in past years so this could also make an impact. True?

Q: To confirm my numbers/thinking around tax loss selling could you please confirm if the following is accurate: If I have a capital loss of $5000 and my marginal tax rate is 40%, I can now or in the future use that to offset a capital gain of $5000. 50% of this capital gain is taxable, so I am in essence saving $1000 spendable cash for myself (40% of $2500). Thanks!

Q: I am pretty sure you have answered this before but I could not find anything with the search option, so here goes.

Brookfield companies have a complex structure and I was wondering in which category exactly their distributions fall with regards to taxation. For example I read that sometimes distributions from shares of BIP held in a TFSA were subject to the 15% witholding tax, while some other times they were not.

Could you please clarify the situation and also state your prefered account in which to hold BEP, BIP and BAM? I have them on my radar, so I want to make sure I maximize returns when the time comes to own them.

Thank you very much as always.

Q: I sold VET on Nov. 29 for a tax loss in my unregistered acct. Can I repurchase Vet in my TFSA or RIF before the 30 day limit. Thanks.

Q: Is this tax loss selling of stocks new? I don't recollect this being talked so much in the previous years. Please help me understand what has changed.

Q: Is the trade date or settlement date used for tax purposes? Can I sell a stock on Dec 29 and claim the loss on my 2018 taxes even though it settles in 2019?
Bryan