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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: In response to the question about DowDupont's splitting into 3 entities and the subsequent tax handling, the spin out is recognized by CRA as an
Eligible spin off and you can elect to defer tax implications and restate the ACB of the 3 spin offs to accurately reflect this. Below are some links that may be of use to you.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/eligible-spin-offs.html



Defering tax

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/information-canadian-shareholders.html

Cheers
Scott
Read Answer Asked by Scott on April 27, 2020
Q: Hi Team,
I am wanting to buy both VEEV and DOCU as both long term growth plays, and to play into their current momentum. I don't have any free cash right now, so have to trim from a couple other stocks to do this. I was considering trimming half of my SQ holdings to buy DOCU, and trimming half of my TWLO holdings to by VEEV. Do you see any issues with these moves? Also, being that VEEV and DOCU are in high momentum right now should I wait for a pullback or would it be OK to buy these at current levels? Also...do you see VEEV and DOCU holding up after this covid scare is gone, or do you see risk of these momentum stocks falling on their face once the virus scare diminishes? Thanks for your advice!

Shane.
Read Answer Asked by Shane on April 27, 2020
Q: Hi there,

Shopify appears that it will not continue it's rise. Sell now or buy more?
Berkshire Hathaway A seems to be, in essence, a pricey mutual/ETF fund but one that has fallen and history would suggest will rebound. Buy now or is it your thinking that Buffet and Monger are elderly and this increases risk and/or the Canadian $ too weak and/or stick with B and diversify. Or none of the above? Thank you.
Read Answer Asked by Wendy on April 27, 2020
Q: Which one credit card company would you prefer today? I am looking at Visa, Master Card and American Express. Thanks.
Read Answer Asked by BRYAN on April 27, 2020
Q: Last year Dowdupont spun-off Dow and Corteva. Amounts were allocated to each of the spin-offs as to their immediate value on separation. I received a T5 setting out those valuations as "foreign income". My broker Qtrade left my original cost for the DWDP prior to spin-off as was. Allocating a theoretical cost for the DOW and CTVA shares without reducing the cost of the remaining DWDP shares leaves open an unfair (to Revenue Canada) capital loss upon sale of DWDP. Fair enough, however the response to allocate the DOW and CTVA share values as income seems unfair to the shareholder: as income full tax is payable whereas only 50% of capital gain is fully taxed and has the ability of set-off against losses.
Question Can you advise whether the Qtrade handling is mandatory per Revenue Canada or arbitrary by broker?
Thanks very much.
Read Answer Asked by Mark on April 24, 2020
Q: Dear Peter and Ryan.
Thank you for your help through the volatile market. Though the Economy is not back yet, we may be able to see the light at the end of the tunnel soon. I checked a few stocks. Airlines and Energy have been down a lot. I want to take advantage of the market and consider allocating 10% of my RRSP to these companies (AC, UAL, EXPE, CVX and SU). I like to think about 2-3 years or longer. Currently I don't own any airlines. I own TOU only for oil industry.

Thank you,
Yiwen
Read Answer Asked by Yiwen on April 24, 2020
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