Q: Sir: I am old, but still need your advise…am taking profits on stocks and just want to keep up with ( true) inflation, and don’t need any more of anything… hate paying taxes… like simplicity… tempted to just invest in precious metals and energy… appreciate your thoughts…
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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: Retired relying solely on my public pensions. Have held DIR.UN for a long time. Just read your latest report. ACB is $3.27 after the ROCs. I hold 2700 units in TFSA which I am orienting towards a growth portfolio instead of income. Would you agree this equity is a candidate to move to my balanced cash account before year end to give it a higher ACB, continue to hold and maybe even add to it?
Q: TC Energy has set the date for the South Bow spin off (I believe Oct/24 - not sure if it was the beginning or end of month) I read that the spin off will not be subject to capital gains until it's sold, that much seems straight forward.
Can you please help me understand how the Average Cost Base will be established, will it be the price of the South Bow Shares at the outset of trading on day one?? I'm assuming the Cost Base for the remaining TC Energy shares stays the same, even tho the share price will be reduced to reflect the pricing of South Bow.
Thanks
Can you please help me understand how the Average Cost Base will be established, will it be the price of the South Bow Shares at the outset of trading on day one?? I'm assuming the Cost Base for the remaining TC Energy shares stays the same, even tho the share price will be reduced to reflect the pricing of South Bow.
Thanks
Q: I asked something about BCAT a little while ago and I now have another question. It appears that the monthly distributions are issued as a return of capital; can you pls confirm if that is the case. And secondly, is a return of capital by a US entity still a return of capital for Canadian tax purposes, or does CRA treat it as interest? I know tax is not your forte, but any info you can provide would be great. Thanks for your excellent service.
Q: Does the 30-40% of the dividend being return of capital in this fund mean that NAV is always being eroded? I want to buy this for the long term but not if NAV is obviously always declining.
Q: My brother in law is asking me about flow through shares.
Can you provide me with some pros and cons of flow through shares.
a sense of the flow through sales industry, i.e. % commissions on the sale of these products.
How risky are they in your experience.
Do the tax breaks / incentives actually warrant the investment?
The sales pitch is that it is for high income earners, is that really because, they are the ones who can afford to lose the investment
Can you provide me with some pros and cons of flow through shares.
a sense of the flow through sales industry, i.e. % commissions on the sale of these products.
How risky are they in your experience.
Do the tax breaks / incentives actually warrant the investment?
The sales pitch is that it is for high income earners, is that really because, they are the ones who can afford to lose the investment
Q: I'm considering buying HDIV ETF. On the ETF website it shows a 2023 total distribution of $1.974 and a ROC (return of capitol) of $ 1.66201 . After watching a video of ROC sometimes the ROC is not a reduction of NAV but just for tax purposes. And in some instances it is actually a return of your own capital and your NAV is reduced. Can you give some clarity on ROC. And how to determine if an ETF in my investment account has dropped in value from return of my own capital or loss of the underlying securities of ETF? My personal situation all my investment accounts are RRSP and TSFSA.
Thanks, Brian.
Thanks, Brian.
Q: what info do you have about this company.
thanks
ralph.
thanks
ralph.
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Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX)
Q: With ETFs like these with high high returns but also high return on capital which contribute to these returns is it more beneficial to keep them in a taxable accounts or non taxable accounts like RRSP or TFSA ?
Thank you.
Thank you.
Q: In 2024, I put some money in BMO HISA accounts (ex: BMT109- not sure how to call them). The distributions are reinvested, not paid. Do you know if BMO will declare the interest paid at the end of the year, or will I have to declare them only when I sell some of it? Good day.
Q: Hello 5i Team,
In an answer to a recent question about HESM, you stated:
"HESM is a US limited partnership, and has VERY onerous tax implications for Canadians..."
Is there a website that maintains an up-to-date list of US limited partnership stocks with additional tax implications for Canadian investors?
Thanks in advance for your always helpful advice!
In an answer to a recent question about HESM, you stated:
"HESM is a US limited partnership, and has VERY onerous tax implications for Canadians..."
Is there a website that maintains an up-to-date list of US limited partnership stocks with additional tax implications for Canadian investors?
Thanks in advance for your always helpful advice!
Q: Good evening,
I know you may not be a tax site but I recently heard that their may be some sort of restriction on Canadians holding foreign assets. Something to the effect of you need a certain ratio of Canadian assets to foreign assets. I don't think this is the case but if it sounds familiar could you please point me in the direction of more resources?
Thanks
I know you may not be a tax site but I recently heard that their may be some sort of restriction on Canadians holding foreign assets. Something to the effect of you need a certain ratio of Canadian assets to foreign assets. I don't think this is the case but if it sounds familiar could you please point me in the direction of more resources?
Thanks
Q: I realize there are no withholding taxes on BIP.UN in an RRSP
What about taxes in a tfsa
Thank you
What about taxes in a tfsa
Thank you
Q: I REALIZE THAT ESTATE QUESTIONS ARE NOT YOUR EXPERTISE HOWEVER THIS IS MY QUESTION. IF ONE HAS A LARGE VALUE OF USA DOLLAR STOCK DOES ONE'S ESTATE HAVE TO PAY ESTATE TAX. COULD YOU REFERENCE ME TO A SUITABLE SITE THAT COULD TELL ME THE AMOUNT OVER WHICH US$ TAX APPLIES AND BECOMES TAXABLE ON A VERY LARGE CANADIAN AND US PORTFILIO?
THANKS
THANKS
Q: Hi folks, I had invested in LQID before they halted... I'm assuming the company is toast - what are the chances of even getting back some of my investment dollars? What are my next steps?
Thx,
Kevin
Thx,
Kevin
Q: What are the tax implications of owing the iShares Gold Trust (IAU) in RRSP and non-RRSP accounts? Is IAU treated the same as other US ETFs for Canadians, from a tax perspective?
I recently read that the US taxes gold as a collectible, at a higher tax rate than equities. Does this apply to Canadians who own IAU?
Thank you for this excellent service.
I recently read that the US taxes gold as a collectible, at a higher tax rate than equities. Does this apply to Canadians who own IAU?
Thank you for this excellent service.
Q: Good evening!
I have shares of BCE at an ACB of $55.40, which today closed at $47.03. I thought maybe of establishing a rather large capital loss for future use by selling them and buying Telus as a proxy for the necessary holding time frame of 31 days to confirm the loss. However, looking at the charts I saw that Telus has been fairing a bit better than BCE lately, so I am not sure that there would be some 'reversion-to-the-mean' happening during the 31 days. That could mean I end up with less shares of BCE when the dust settles!
Sort of a two-parter here. First of all, is this a good idea at all? Second of all, if it is, is there perhaps another 'proxy' you might suggest I look at?
Thanks!
Paul K
I have shares of BCE at an ACB of $55.40, which today closed at $47.03. I thought maybe of establishing a rather large capital loss for future use by selling them and buying Telus as a proxy for the necessary holding time frame of 31 days to confirm the loss. However, looking at the charts I saw that Telus has been fairing a bit better than BCE lately, so I am not sure that there would be some 'reversion-to-the-mean' happening during the 31 days. That could mean I end up with less shares of BCE when the dust settles!
Sort of a two-parter here. First of all, is this a good idea at all? Second of all, if it is, is there perhaps another 'proxy' you might suggest I look at?
Thanks!
Paul K
Q: Hello 5i, I own Crew in a cash acct and will wait for the conversion to shares of Tourmaline. My question is will this transaction be considered as a taxable disposition of my Crew shares?
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Global X Canadian Oil and Gas Equity Covered Call ETF (ENCC)
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Hamilton Energy YIELD MAXIMIZER TM ETF (EMAX)
Q: I'm leaning towards emax in a cash account to diversify with the US holdings even though encc has a higher yield.
What are the tax implications of emax vs. encc.
emax writes in the money options on 30% of the holdings
I cannot find this data for encc
Thank you
What are the tax implications of emax vs. encc.
emax writes in the money options on 30% of the holdings
I cannot find this data for encc
Thank you
Q: I currently hold NVDA in non-registered account and two registered accounts. In view of the poor performance and perhaps a low future growth in the automotive industry, I am thinking of selling my position in the non-registered account, harvest a capital loss and initiate a position in NVDA. I am trying to take advantage of the pullback in NVDA and increase the growth profile. Understanding your limitation in providing advice on this move, your opinion of the pros and cons of this switch would be appreciated.