Investment Q&A

Q: Regaring Davids request on tracking TFSA contributions. cra.gc.ca keeps track of all contributions and withdrawls. This is found in MY ACCOUNT under RRSP & savings plans. However it is not always up to date.
FYI

Q: I have searched widely for the answer to this question but haven>t found one, Perhaps you can help. When claiming tax loss for a certain stock, is it necesssary to claim the ACB, or can you claim, if you are only selling a portion of your holdings in that stock, can you claim the highest price paid?
thanks

Q: Good Morning. I would like to know if there is a time limit to declaring profits and losses on my income tax return. Thank you.

Q: Hi Everybody,

Further to my post yesterday, I found the address I needed; still don't know how to file it electronically though.
Thanks for putting up with me.

Molly

Q: Hi,
Hi
I just now renewed my membership.Will my membership fees be considered as a valid investment expenses under CRA rules and can I get tax deduction from my capital gains while filing my 2015 CRA tax return?
thanks

Q: Responding to a question regarding form T1135. CRA website states that for 2014 you can file this form electronically. But when I phoned U-File they told me that I have to sign and send the form using regular mail. Both U-File and CRA website has the mail address. Using U-File I was able to complete the form and print it. Don't know which packages allow you to send this form electronically. Responding to longstanding frustrations with Form T1135, the government announced in the proposed budget that there will be a streamlined process for taxpayers with between $100,000 and $250,000 in specified foreign income.

Hope this helps.

Q: Hello Peter & Team,

I wonder if I could get some guidance from fellow members about what to do with form T1135 after I've completed it. It sounds like a stupid question but the form seemed not to be a part of my return when I was actually completing it. When I do file my return, can I be sure the T1135 will be included?
Especially as the certification bit needs to be signed. I'm sure I read somewhere that it could be filed electronically too.
Thank you for letting me use your forum like this; I'm getting a little frantic.

Molly

Q: For tax-planning purposes, I'm trying to keep a lid on net income. Can you recommend some quality stocks that pay out a decent, mainly non-dividend distritution (other than REITs and BEP.un, which I already have)?
Thank you!

Q: Hi, I received in 2014 a cash and Verizon stock dividend from Vodafone.My question is do I declare the stock dividend as a dividend or return of capital for adjusted cost base on Vodafone stock. If anyone is in that situation would appreciate the input. Is this a valid quetion ?

Q: Is an RRSP the BEST place to hold these large US DIVIDEND paying Stocks? I know they should NOT b held in a TFSA.

Thanks! Austin

Q: Just a comment to Raymond re the US tax package - if you are a Canadian resident and citizen with BIP in a taxable account, you should have a T5013 for the LP to use for Canadian taxes. You can disregard the US tax package, unless you happen to be a US citizen. Check the Brookfield tax info website included with the US package.

Q: I owned shares in Brookfield Infrastructure for part of 2014. I just received a letter from them enclosing information for filing a 2014 U.S. tax return. The shares were bought and sold on the TSX.

I have held shares in quite a few companies over the years and have never received a similar request so am not sure what to do with this one.

Is this something that you folks know about or do I need to consult a tax adviser?

Thanks for all the great info and help you provide.

Ray

Q: Dear 5i; I was reading through the TFSA questions and the one asked by M S on July 17, 2014 got me thinking about transfers-in-kind and taxation. So firstly, I wouldn't necessarily want to transfer a "gainer" because of the capital gains tax payable. On the other hand, it seems to me that transferring a stock that is currently under-water could be advantageous. This would of course be a stock that I intend to keep because I expect it to recover, so therefore the inability to claim a capital loss is a moot issue. The advantage would be that for a given amount of contribution room, I would be able to transfer a larger number of shares into my TFSA than if the stock were at or above my ACB.

Do you think this is a sound strategy, or are there other considerations that I am missing?

Q: Thank u to Arneh for the clarification on Hxs vs Zsp
I did not mention that it was a non reg account so this was very helpful
Much appreciated

Q: I have taken 50000.00 for a quick trading account and it is split into my wife's and my TFSA's. I plan to actively trade these accounts and the plan is to profit from quick price changes in active companies: like BTO, SGY. I have been doing this for the last couple of months and have increased the account value by 7000.00
My question is this.
On BNN yesterday I heard that TFSA's may be taxed on quick traders. Have you any information that can help me on this. If the gains will be taxed I might as well put the money into RRSP's and RESPs.
Thank you

Q: Wfc Canada is not a foreign affiliate of a Canadian person as that would require the Canadian person to own at least one percent of the company's shares.

However wfc Canada appears to be a Canadian company, in which case the t1135 would not be required.

Q: Hi Team,

I am doing my tax return and am struggling with one transaction for foreign reporting purposes (form T1135).

In 2012 I bought a Wells Fargo Financial Canada bond (CUSIP ID: 94975ZAX4) and sold it in 2014. I can't conclusively determine if Wells Fargo Financial Canada's bonds are foreign or domestic. I bought the bond through TD Waterhouse in Canadian Dollars.

The Wells Fargo Financial Canada site (https://financial.wellsfargo.com/canada/en/index.html) provides a Mississauga, Ontario PO Box as its address. The fine print on the web site says: "Wells Fargo Financial Corporation Canada is associated with Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company."

Do you know how I can determine if this bond is a Canadian or foreign asset?

Many thanks for any suggestions....

Michael

Q: Hi Again, I may have found an answer to my question. CRA states that Specified foreign property does not include (among other exemptions): a share of the capital stock or indebtedness of a foreign affiliate.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

Wells Fargo Financial Canada would appear to be a foreign affiliate therefore its bonds are exempt.

Q: Hello,
I'd like to check out my understanding of capital losses/gains in various types of accounts. Like everyone else, I feel I pay my fair share of taxes and don't want to pay more than I have to....
TFSA - very clear, no taxes... but when you have an unrealized capital loss (for example, due to an out of favor sector) isn't there incentive to "hang in there" unless you KNOW your money will gain better returns in something else in the short term?
RDSP/RESP - are contributions and grants/bonds recorded as absolute amounts??? If so, that would mean everything else is "earnings", taxed upon withdrawal, and this results in an offset off capital losses to capital gains... true? or am I missing something?
RSP - a tax break is granted for the year of contribution, at whatever tax rate you are at... upon withdrawal, if you have overall capital losses (which no one wants) you pay tax (presumably at a lower rate because your overall earnings are less) on the lower amount, so you are getting a tax break... if you have net capital gains, you are paying tax on 100% of these gains, which obviously is less advantageous than if you held them in a non-registered account.
So, in a RSP account, isn't the same effect (as long as you have more capital gains than losses) equivalent to offsetting capital losses to capital gains, with the exception that you have to pay 100% tax on net capital gains (versus 50% according to current rules)???
I realize you aren't tax professionals but I think these are pretty fundamental questions for which you have the answers.
As always, thank you tremendously for offering this service.

PS. I was reading the previous Q&A, as usual, and want to know whether you are looking at no longer allowing new members as of a certain time...
Also, please clarify what is or is not happening with these "new portfolios/ETFs" I'm seeing on the Q&A. Thanks!!!

Q: I too have that black cloud over my trades, thus this question.
If I own 1000 shares in company xyz in my non-registered account, and have a loss I want to capture, if I sell 500 shares, and retain the other 500 shares, do I still get to claim the loss on the 500 shares I sold at a loss.
Thanks as always