Investment Q&A

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

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

Q: Is it necessary to wait 30 days to rebuy same stocks in tfsp.Thanks

Q: Hi5i,
I am a holder of HOT for quite some time in my rrsp account. I have noticed a new non resident us deduction when getting paid the dividend. Can you explain what that is?
Thanks Dave

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!

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

Q: In your TFSA if you trade US stocks do you pay capitol gains and how much of a percentage is that
Thank you

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!

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

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/

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

Q: Ancient person would like your insight on whether or not best to make transfer out of mandatory RRIF deduction early in year or late?

Q: Just an addition to your answer to Saeed question this morning. Although there is a US withholding tax on dividends from US stocks, in most cases this is claimed against payable Canadian taxes, using a complex formula of the ratio of US income and Canadian Income.

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,

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!

Q: at&t are paying 6 pct dividends .do I get dividend tax credit on US companies. thank you. mike miller

Q: hi there,
I am not sure how MLPs are treated from a Tax perspective. Are they better held in an RRSP versus a TFSA or does it matter? What are the downsides of owning these?

Cheers

Q: Greetings :)
TAX LOSS SELLING: I have two separate investment accounts held with two different brokers. I want to sell my loss-making investment from account #1 and buy again in account #2. I understand that tax loss will only be allowed if I don't buy the same stock again within 30 days of the sale. Can I circumvent the 30 day rule by buying that stock in advance in account #2 BEFORE selling from account #1? Does the 30 day countdown commence only from the minute the sale is closed?

I hope that make sense.
Many thanks!
Arzoo

Q: On BNN this morning Larry Berman made a comment about ETFs that are sold in Canada and are essentially repackaged ETFs from the US. He stated that there is some double taxation going on. I believe related to withholding taxes although he didn't explain in detail.
I hold VGG and VEE which are repackaged holdings of VIG and VWO, respectively.
Is this in fact true and how much of an impact would this mean to the rate of return?

Q: I would like to purchase BSV for my non-registered, US-dollar denominated account. Will there be foreign tax withholding on the distributed interest? Multiple sources give conflicting answers, but most suggest that there would be no withholding tax. Thanks in advance.