Investment Q&A

Q: if it takes 3 days for deals to clear can you buy equities now for 2017 contributions ?

Q: When rolling put options does the superficial loss rule apply?

Q: MST.UN is mentioned often on the BNN Market Call Q&A sessions [excellent info show].
Good #'s and $'s, good prospects esp. with Trump/Perry and the pendingTexas oil boom.
My Q is about the dividend payout. What are the tax implications re CRA reporting and showing for tax year. Is the payout in US $? If so, the purchase exchange is offset by the falling Cdn $, the rising US$ and the creation of a US account for future US equity purchases. How is the future sale etc. treated by CRA?. I realize you are not tax people but I'm sure these are fundamental questions by novices. Thank you.

Q: My question is about year end taxes for capital gains or losses. If I sell a stock on say Dec 28, is it considered a gain/loss for the 2016 tax year or 2017 tax year? The "settlement date" always appears to be three trading days after the sale date. I am guessing the "settlement date" is the date that is used for tax gains/losses - is that correct? Is there a specific date in 2016 when the gains/losses are considered to be in 2017 - Dec 28?

Q: Hi Peter and Ryan, I'm just making sure I understand the withdrawal rules correctly in dealing with TFSA accounts. I have some cash accumulated from the payments of dividends during the last few months in my TFSA. Am I allowed to withdraw say $2,000.00 in cash from my TFSA account in the next few days (before December 31). Then after Jan 1st, 2017, does my new limit for 2017 become $7,500.00? If so can I transfer (in kind) shares from a cash account worth $7,500.00 into my TFSA without issues? Thank you so much for all you do and all the best in the new year. Mario.

Q: Do you have an opinion of ETF's structure. Specifically Horizons using derivatives and reflecting dividends in the share price vs. more conventional ETF's. If you could comment on the downside and upside of either structure. Thank-you and Merry Christmas.

Q: Good Day

With tax loss season here, any suggestions for buying stocks being sold for tax losses.

Thank you

Q: Hi Peter and team,
This your no body is talking about tax loss selling. Will you pl throw some light on the subject and likely candidates having strong balance sheet?

Q: Holding modest amount of funds in trust for kids w/5 year time frame. What do you think of Bayer today as lynchpin holding for US funds? Is there a difference tax wise for dividends vs US company like PFE? Thanks as always for the great service!

Q: Hello and Merry Christmas to all at 5I.
Moving forward I have new funds to add to my portfolio in the fixed income sector. My RRSP portion is fully utilized for fixed income using CBO and XBB so this is new fixed income funds outside of a sheltered account should I still use XBB/CBO or is there some other fixed income source that would be more beneficial that I should consider.

Q: Magna pays their dividends in USD. On their website they indicate that their dividends are "eligible" thus eligible for DTC. How does one be as tax-efficient as possible, not pay brokerage a conversion fee for USD to CAD conversion, and apply DTC? Cannot apply DTC if held in TFSA or RSP.

Q: How do capital gains work with US stocks? In addition to the gain, do you have to factor in the exchange differential rate from purchase to sale. If the US dollar increased in value during this period, does that increase the gain to be declared and the other way around? Thank you for the great service.

Q: Would xsu and zub be ok in a resp regarding with the holding tax. thanks

Q: UL Unilever
company does not come up. I own UL adr and there is no withholding taxes only minor administration fees on TD webbroker.105.93 dividend, 1.50 adm fee.
just a comment.

Q: Hello, I know you do not recommend holding REITs in a taxable regular account. In that context, where is the best place to hold income funds such as Pizza Pizza (PZA) or Boston Pizza (BPF)? My understanding is that their distribution is in the form of a dividend portion plus a return of capital portion, is that effective from a tax perspective? Regards, Gervais

Q: I have a question about 1714,Hi,I would like to diversify out of Canada with a etf. If I bought VGG in my cash account,would I have to fill out a U.S. Tax form,or would it be included in my Canadian tax return? I file my own taxes and not interested in filing U.S.taxes as well.
Would Vgg be good for income 3-4% and a little growth or could you recommend something.
Thanks,Brad

Q: Can I have your thoughts on ZDI or an alternative you suggest. Yield and holdings look good. Also, what do you suggest as a foreign stock holding percentage for a portfolio not including US stocks. Looking to add foreign dividends and exposure with existing incoming Canadian dividends from portfolio. Does ZDI hold the stocks directly or through another ETF, I want to get as close as I can to the ownership of the stocks through the ETF avoiding any unnecessary extra fees.

Q: HI guys .if I hold US stocks in my TFSA ; do I have to pay US tax's on any profits or is it exempt like my RRSP or rif's as always Thank you GARY

Q: Good afternoon,

My question pertains to holding US equities in various accounts. Can you please validate or refute the following:

Cash account: US dividends are taxed as interest-50%, and a 15% withholding tax is applied which can be redeemed during tax season.

RRSP: US equities are supposed to be capital gains and divends tax free. However, I have noticed that some equities, such as limited partnerships have their dividend taxed at 38% with an additional 15 % non redeemable withholding tax. Can you confirm this, and are their any other types of US equities that are Exempt from RRSP tax sheltering?

I have also been told that US equity ETFs that are listed in the US are also have their dividends taxed. Is this true? And would this be the same for US equity ETFs that are listed in Canada (ex: those listed on black rock Canada website )?

Thank you for bringing some clarity to the issue. Any other tips you may have would be well appreciated.

Cheers,

KR

Q: Thank you, Alphonse for your question. It was the CRA that I wanted to know about. I wanted to know whether I should eliminate my losses before the federalistas suddenly change the way losses are handled. Is that a concern?