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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: Good morning,

I have questions regarding the taxation of foreign dividends. I know that for US dividends, the 15 % tax does not apply for stocks held in a RRSP, but does so in a TSFA or regular account.

- What about non US stocks listed in the US? Are they simply treated as a US stock since they are listed in the US or do other rules apply depending on where the company is based? Good examples would be stocks like LYG (UK) or BABA (China).

- More generally, is the deduction applied automatically when the dividend is paid or does it have to be declared manually by the shareholder on its annual tax report?

I understand fiscal matters are not your specialization, but I figure you or other members might have had the same questions at some point.

Thank you!

Read Answer Asked by Pierre-Charles on August 16, 2018
Q: Can you please discuss tax treatment of distributions in TFSA, RRSP and investment accounts.
Thanks for your service,
Stebe
Read Answer Asked by Steve on August 10, 2018
Q: Hi group please explain in simple terms how dividends are taxed both in the US and Canada . Your answer needs to cover cash and registered accounts . I have significant gains in my cash account in the US and do not fully understand the tax implication's Thanks fro all you do for us
Read Answer Asked by Terence on July 25, 2018
Q: What is the most tax effective way to hold US stocks? I’m 32 with a good income, and have a full balanced tfsa holding Canadian stocks and etfs. I’m interested in building an account to hold US dividend aristocrats/Kings set up on auto deposit/drips as a set it and forget it style account. From everything I’ve read the dividend aristocrats generally have returned better than market average with good security and fairly stable growth, would you agree? I own my own companies so my income is structured to be very low tax, so I don’t need the break offered by the rrsps but I do have quite a bit of contribution room there. Would you recommend rrsp for US holdings for tax reduction, or is there a more efficient way?

Thanks
Read Answer Asked by david on July 23, 2018
Q: Is there any difference / benefit of holding these in a TFSA vs RRSP (tax wise). I understand the favorable tax treatment to US stocks in an RRSP via withholding tax. What about ETFs that trade on the TSX but hold US stocks?

Thank you!
Read Answer Asked by Kyle on July 09, 2018
Q: I own these three US traded companies. my question is are they all bankrupt and should I be gifting them to my online brokers TD, to clean up my portfolio. mlkkf,rbeif,guesf
Read Answer Asked by Dave on July 06, 2018
Q: In your TFSA if you trade US stocks do you pay capitol gains and how much of a percentage is that
Thank you
Read Answer Asked by Greg on June 29, 2018
Q: Hello,
Needing confirmation about withholding taxes.

European/International stocks are held in a Canadian "wrapper" within TAXABLE account then some websites say we can get dividend tax credit and others say we cannot. Confused.

For which type of account account should I buy above two holdings where dividend taxes can be mitigated?

Thanks!

Read Answer Asked by Arzoo on June 27, 2018
Q: tell scott he absolutely has to file u.s. tax returns and this will go back at least 8 years now, so 8 years of tax returns.
and my wife was a u.s. citizen , but she renounced her u.s. citizenship 3 years ago, it costs about 2500. but it it worth it.we are never moving there she is a cdn citizen and the expenses for tax returns and fbars were onerous.
tell scott the u.s. government will come after him guaranteed. dave
Read Answer Asked by david on June 25, 2018
Q: With regard to Scott’s question on citizenship and filing US tax returns I can say this is a very complex question to answer. This website (not an endorsement) has lots of information about the subject. It might be wise to consult a lawyer. http://www.citizenshipsolutions.ca/
Read Answer Asked by Michael on June 25, 2018
Q: I was hoping that you or one of your subscribers might be able to assist me. My understanding is that the IRS requires all US citizens to file US tax returns even if they do not reside in the US or have ever worked in the US and recent laws make the failure to do so extremely punitive. My question is - I was born in the US to Canadian parents who were in the US 60 years ago for a brief work term. When I was born they applied for and received a "certificate of Registration of Birth Abroad" from The Canadian Department of Citizenship and Immigration to certify that I am a Canadian citizen. Am I still required to file yearly IRS tax returns even though I have never worked in the US and am legally a Canadian citizen?

Many Thanks

Read Answer Asked by Scott on June 25, 2018
Q: What is CRA's position on short term trading of a security in a TFSA while it is also being held in a non- registered cash account or a corporate holdco account?
For example if I have a long term position in ENB.to in my core dividend growth portfolio am I allowed to swing trade ENB.to in my TFSA account? Additionally, would it make a difference if the long term position was in the black or red?
Thanks,
Read Answer Asked by Randy on June 15, 2018
Q: Good Morning Team,

Just wanted to confirm the following:

- Capital gains on a US or Canadian stock held in an RRSP and TFSA are not taxed either by Canada or the US
- Capital gains on a US or Canadian stock held in a non-registered (RRSP) account are taxed
by Canada only.
- Dividends on a US stock held in a non-registered (RRSP) account are taxed both by Canada and the US.

Thank you for your confirmation or corrections!
Read Answer Asked by Saeed on June 15, 2018