Investment Q&A

Q: Hello,

I have my RRSP, TFSA and non-registered accounts with Interactive Brokers Canada (IBKR). In reading a review about IBKR, I read some comments about “the possibility that holdings within a RRSP held with Interactive Brokers Canada may in fact be taxed by the US IRS in the event of death of the account holder.”

I researched this further and read that the US estate tax regime applies to US situs assets. US situs assets are property located in or having a connection to the US, including the following:
1. Real property located in the US;
2. Shares of US publicly traded companies (even if owned inside a Canadian RRSP);
3. Shares of US private companies;
4. Cash accounts with US brokerage firms;
5. Tangible personal property located in the US with some degree of permanence; and
6. Certain debts owing by a US debtor.
https://altrolaw.com/blog-cross-border-estate-planning/us-situs-asset/

The IRS website indicates “Estate tax treaties between the U.S. and other countries often provide more favorable tax treatment to nonresidents by limiting the type of asset considered situated in the U.S. and subject to U.S. estate taxation.”
https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns

I own US stocks and ETFs (ex. AAPL, SPY, QQQ) in my RRSP and TFSAs. I also hold US$ cash in my non-registered account. Considering that there are significant investment opportunities in the US, I am loathe to stay away from investing in the US markets.

My questions are as follows:
1. Is there an estate tax treaty with the US to prevent (double) taxation? I would assume paying the necessary taxes in Canada would absolve the estate from having to pay any further taxes in the US.
2. Would it matter if my RRSP and TFSA are held in a purely Canadian brokerage such as RBC instead of IBKR which has a presence in both US, Canada and other countries?
3. Is a TFSA considered a non-registered account in the eyes of the IRS, specifically from the point of estate taxes.
4. Any other items to consider?

I would really appreciate your views and comments as I am sure this will be of interest to a fair number of your subscribers. Please deduct as many credits as required.

Thank you

Q: Hi 5i,
I'm trying to put together a materials allocation for my portfolio that pay a dividend. These are the companies I have come up with that pay a stable dividend and appear to not have too much related business. Is more diversification needed and can you make recommendations. Also is there any better replacements for these companies I would like to have at least a two percent dividend. Thanks!

Q: Hi 5i,
I hold NFI in a reg'd account where I endeavour to buy and hold. A while ago it was up nicely but then lost all its gains and more when the revised guidance came out. Now, with its recent soft recovery and dividends accounted for it's back in black, slightly.
I'm not optimistic about NFI's next couple of years and would like to see better capital gain and dividend income from the funds currently in NFI, and I'm considering WJX as a replacement. What do you think of this move and, if not WJX, can you suggest another one or two names for me to consider?
Much the same circumstances and question regarding AQN, which I think is somewhat stale these days and may be for a few years to come. I'm considering CPX as a replacement and would appreciate your opinion on that move, and your suggestions of one or two other than CPX if you think leaving AQN behind is wise but CPX might not be the answer.
Thanks and please deduct accordingly.
Peter

Q: Hi 5i,
I know you haven’t been big fans of BLDP and neither have I. I don’t know if it ever made any money. However, in the past few weeks it has announced a couple of development partnerships and a fuel cell deal to power a Talgo passenger train in Spain on a trial next year with expected commercialization in 2023. Is it too early to climb aboard? The stock price seems to be gaining a bit of traction lately as well.
Thanks again.
Dave

Q: Why has MTL not been as as strong as other companies in the sector?
where the latest results that bad?
If you had a choice would you prefer MTL over MCR for an energy play.
With the energy sector so hot,those stocks have to benefit some day.dont you think so?
What are the insider owner ships in MTL and MCR?

Q: Can you provide comments on the Company's annual report?
Also the Company's CEO has repeatedly stated (multiple press releases reference this) that the Company will be at a revenue run rate of $2 million per month by the end of the year. If the Company were to achieve this, what is implied share price based on what competitors are trading at? Based on my estimates of $24m of annual revenue and comparables trading at 25x revenue this would imply a share price potential of over $3. It is currently just over $1.

Q: Bmo dropped $4.20(including $1.06 Div,Oct 29 being XD day).See no news, maybe due to month end balancing. Is this an opportunity to buy as think it was oversold. Txs for u usual great services & views

Q: I think electrolysers / electrolysis may be a growth area in the near term. 

Can you suggest some public companies or ETFs  that are in this technology or space? 

Q: I am looking for monthly income. So far I am considering ZEB, KEY, PPL, and either HHL-B or HHL-T. Your opinion on those, and any suggestions you have, please.

Q: Hello 5i, I had shares of Score in a TFSA account and a SDRSP acct and now I have PENN in both accounts. Could you comment as to can PENN be held in these 2 accounts and the tax issues in both accounts.

Q: Peter; Any news or tax selling ? Thanks. Rod

Q: If I purchased company "A" at $40.00 with a 6% Yield.
Since then, company "A" has gone to $60.00 and the Yield looks close but frankly I have forgotten.
Is the current indicated Yield based on the Share or on the Price ?

Q: We have a balanced portfolio with a growth tilt. Current Industrial sector stocks held and their percentage in total portfolio are:
CAE-1.7%, WSP-4.9%, AC-1.9%, XBC-1.3%, XYL-1.9%, MRS-0.3% and etf CWW-2.5%.
Have some cash to add and have been looking at ATA or TFII or topping up one or more existing holdings. Dividend not necessary. Would appreciate your thoughts and/or alternative suggestions.
Many thanks as always.

Q: Given todays pull back on earnings, would you see this as a good entry point into CCO?

Thanks

Mike

Q: Good Day 5I team: Can you account for the recent and for me quite dramatic decline?All the best and thanks Larry

Q: Any thoughts on quis at this time would be appreciated. It seems to be having trouble getting any traction. Analysts are still very positive on its potential but in comparison to my other tech stocks (I'm over weight tech and its the lagard) i also hold softchoice. my hesitation to part with it is fomo as the lowest of the analyst estimated is almost a double. Your thoughts?

Q: Hi, Please comment on Richards Packaging earnings release, Does it inspire more confidence in owning the stock ? Thank You

Q: Hi 5i,

With the recent pull back do you consider TWLO current price ~$280 a good entry point? Do you still like the prospects (i.e.) growth, or is this a falling knife? Will Rising Interest Rates put further pressure on the valuation?

Q: Hi,

Despite chip shortages, I'm considering taking my first position in a vehicle manufacturer. I'm specifically interested first in LCID and second in F. While I expect F to have some very experienced managers/executives/board members, what can you tell me of the people directing LCID? Lots of previous experience and are they up for the task?

C.

Q: Do you have any investment ideas in the area of hearing assistance. The wearing of air pods appears to be ubiquitous and will accelerate the demand. Looking for a few company ideas to tuck away in my RRSP. Besides the chip companies are there any more direct way to play what I think is going to be a secular long term play. US Europe or Canada.

Thanks for all you do!