Investment Q&A

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

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

Q: Hi 5i
Do you see any reasons why these two companies will increase in value over the next 30 days? I have significant losses that I could bank, but I like both for their dividends and could buy back after 30 days. Thanks

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

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 $.

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?

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.

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

Q: Do theses etf's ie HXT & HXS require the 1035 US tax form to be completed?
Thank you for your service

Q: Is it necessary to complete CRA form T1135 for investment of more than $100,000 in this ETF in a Cash Account.

Q: I understand, above a certain amount, it is NOW more complicated to hold non-sheltered American stocks. Please explain.

Paul

Q: I am trying to weigh the after tax consequences of withdrawing my entire RSP this year with a RIF alternative of withdrawing funds over say the next 15 yrs. I collect both CPP and OAS. Can you point me in the right direction as to how or where I could have the various scenarios "modeled"?
Thanks,
Terry

Q: For ETF's - VDU, ZDY & ZGI- is it more suitable to have them inside my RRSP or TFSA?

Q: Do you feel VET is a good candidate for tax loss selling at the end of September and repurchase 30 days later (end of October)? I understand Mr. Trump's Iranian oil sanctions come into force in November which may pressure oil prices upwards. Mr. Trump seems to be leaning on the Saudi's to increase production but commentators seem think they don't have enough spare capacity to help him out. I would try to swing my activity to keep the monthly dividend. Do your sources indicate the Record Date for September?
Thanks,
Jim

Q: What are you thoughts on swap or synthetic etfs? I have a basic understanding of how they work, and they seem like a good thing to pop in a non-registered account after RRSPs and TFSAs are maxed out. What do you guys think?

Q: Given the expected volatility in the upcoming U.S. Election, and not wanting to face tax consequences by selling equities outside of Registered Accounts, what reasonably priced "Puts" and duration of "Puts" would you potentially suggest placing as insurance to protect the rest of the portfolio?

Q: This is a tax question. I appreciate your help.
Let’s say you have a non- registered account. You A) own a Canadian dividend payer, like TD. It pays a dollar in dividends. You also have B) a ‘ partial return of capital’ payer, like BEP.UN. It pays a combination of dividend and return of capital. So after the gross ups, and all that, what’s left in each case. Put another way, what is the better after tax return? Thx Frank

Q: Why the CRA is targeting some TFSA accounts in court; Should an average investor be worried? by Jonathan Chevreau Aug 27, 2018 https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/

I don't think this is something I need to worry about just yet as I only have $81k in my account and my wife has $106k in her KTFSA (I call it the Kinda Tax Free Saving Account because it's kinda ok to make some money just not too much). We both still have $7k TFSA room for this yr. but we also have plenty of RRSP contribution room. In light of this article, I'm wondering if we should hold off adding to our TFSA until more clarity is provided by the either the courts or CRA.

Like many, I'm sure we aren't using our accounts like a business but at the same time I don't know what triggers an audit. Nor do I wish to find out since I don’t have the time/resources to prove our innocents. I'm starting to think this may be concerning to more than just a handful of 'savvy' investors as the article would imply.

We appreciate your insight on this topic.
Thanks

Q: Nearing retirement, and wishing to lower risk and shift out of some aggressive equities, that have considerable capital gains. The equities are in non-registered accounts, and will trigger considerable tax. How do you suggest to do this?

Q: I am retired, live on income from investments which is sufficient for my needs and carry enough capital losses from past sins so I do not have to worry much about taxes on capital gains for a few years. I assume Return on Capital is essentially a capital gain.
I have assumed that keeping growth companies in my registered accounts therefore is the wrong way to do it as I lose the capital gains advantage. I therefore only put the fixed income (interest) investments in my RRSP. As many REITs and other .UN investments have sometimes a large RoC portion, it is also a mistake for me to keep them in an RRSP. Am I making sense?