Q: Good Morning 5i Team,
1. Is the capital gains tax the same on CDN and US stocks in a cash account?
2. Does one pay more tax selling US stocks with no dividends in an RSP or cash account?
3. Are the dividends from preferred shares eligible for a tax credit? Or does it depend on the offer?
Delete question credits as required.
Thank you and keep up the great work.
1. Is the capital gains tax the same on CDN and US stocks in a cash account?
2. Does one pay more tax selling US stocks with no dividends in an RSP or cash account?
3. Are the dividends from preferred shares eligible for a tax credit? Or does it depend on the offer?
Delete question credits as required.
Thank you and keep up the great work.
5i Research Answer:
1 - Yes, the same.
2 - Holdings in the RRSP are tax-deferred, so there would be no immediate tax impact from selling within the RRSP. Selling within a cash/unreg account would lead to a potential capital gain/loss for the year. In the case of selling, the dividends would not really factor into anything here (but of course would be taxable in an unreg account). RRSPs are more tax efficient vs unreg accounts.
3 - Canadian Preferred dividends are eligible for the tax credit.