Investment Q&A

Q: Re: Capital Gains Inclusion Rate 66% within Corporations after June 25, 2024 (no tax integration with personal gains exemption on first $250 K)

Given the choice and all else equal, would it make sense to trigger capital gains within a Corporation portfolio, before June 25, 2024 and conversely, trigger losses after June 25, 2024? This is also part of a rebalancing exercise that I was planning anyway. There is no rush, financial need, or cash flow issue.

(Disclaimer to take pressure off you: Market prices fluctuate, investment decisions should not be based on tax considerations alone, and complex decisions should be done with financial advisor, accountant, etc).

Q: I thought I read somewhere that you do not have to report capital gains that are less than some threshold amount, like say $50, but when I search I find nothing about this. Is it true? If true, would that threshold be per sale or in aggregate for the year? Because I have several transactions with DLR for currency exchange which result in very minor gains/losses. A bit tedious to report especially if just pennies are involved. Also, when reporting, I suppose one has to keep the 30-day investment loss rule in mind? Thanks.

Q: I really appreciated your explanation made today on this ETF.
Do gains/losses made holding this ETF comprise capital gains and losses only or do they include interest? You peaked my interest with this as I currently have a lot invested in GICs / money market and am not relishing the tax hit.
Thanks a lot

Q: hello 5i:
Regarding the tax treatment of dividends from a US preferred share, held in a TFSA: would there be a 15% withholding tax on the dividend, or is it exempt because its in a TFSA?
Also: if there were a capital gain on the preferred held in the TFSA, would that be exempt from the 15% withholding tax?
thanks
Paul L

Q: I CURRENTLY HAVE 500 TCN SHARES IN MY TFSA IN CDN $
I HAVE REQUESTED TO HAVE THE BUY OUT BY BLACKSTONE PAID TO ME IN $US AND THEN WILL TRANSFER THEM OUT OF THE TFSA INTO MY NON REGUISTERED ACCOUNT.
QUESTION. IN JAN 2025 I INTEND TO REPLACE THE VALUE OF THE TCN SHARES BACK INTO MY TFSA. WHAT WILL BE THE VALUE THAT I CAN PUT BACK?

Q: Do you expect selling pressure in the Canadian market over the next two months as investors 'rush to the exits' to realize capital gains prior to June 25th? Do you think that this selling pressure may have a material impact on the share price of those stocks that have realized large gains over the past couple of years?

Q: Hi

Looking at my 96 year mother's Investment accounts, when she passes away, the estate is going to get nailed with this new capital gains tax. My mother is a buy hold type of investor having some stocks for 30 plus years.

Then you add cottages into the mix look out scout the estate is going to get nailed. Am I correct?

If the so called generation that was to receive a vast fortune with this new rule will be getting a lot less is this correct?.

In my case I am 68 have 1.5 million in a RRSP's and 2 million in cash. I receive 4 indexed pensions and have zero debt

Would it be wise in my situation (and others in this situation) to start withdrawing form my RRSP and setting up accounts for my children. Also start selling my mother's stocks that are up 300%, before this new budget become law.

Your comments and possible suggestions would be greatly appreciate.

Thanking you

Mike

Q: First time PRIF account holder here ( 59 years old, retired 11 years ago, took control of my company pension, created a LIRA account, and with 5i's help have enjoyed a multi bagger). Cant say how valuable the knowledge I've learned being a member here has been, thank you folks very much! Of course being in a registered account my gains have been tax free, now setting up a monthly income stream I'm subject to the with holding tax. Dont mind paying my share of taxes, but curious if there are any strategies to lessen that burden?

Q: Is the proposed increase in tax for capital gains over $250,000 an annual amount or a lifetime amount?

Q: hello 5i:
regarding the CVRs issued and your comment on shares held in an RRSP: does this also apply to TFSAs? If they have no value, and can't be taxed anyway, I fail to see why they can't be held.
thanks
Paul L

Q: Hi Peter, It will be nice to get your detail opinion on today upcoming budget from investors point of view via a blog. Just a suggestion.

Q: 2024 budget re capital gains tax increase, does this also apply to stock dividends.

Q: I have one stock whose ACB has reached zero as a result of repeated ROC charges. Is it possible for a stock to have a negative ACB as a result of further ROC charges? How is the ROC paid when the ACB is zero?

Q: Good Day 5I team: Is it allowed by CRA to transfer a security from a non registered trading account to your tax free savings account,to make up your contribution limit? Thanks Larry

Q: Regarding both BMO { ZWB, ZWU,ZWT, etc. } and Hamilton { HMAX, UMAX, FMAX, etc. } covered call ETFs, do either use a return "of" capital as part of their distributed yield ? ..... If so how much and would it be a deterrent from buying them ? I have put the word "of" in quotation marks as I think it means I am getting my own money back ? ..... Thanks for your always sound advice .....

Q: I have looked for but can't find information on the ACB of TOI and LMN if you received the shares as a spin-off from CSU. Would you be able to provide this information?

Appreciate your insight.

Paul F.

Q: I am 88 years old, I recently purchased a GIC in my name and I also added my two adult children to the GIC. Can you tell me what a bear trust is and would my GIC be considered a Bear Trust?
Also I put their name on my brokerage account to save probate fees.
I would like to know if these are considered simple joint accounts, or are they considered Bear Trusts?
Thanks as always for your expert opinion.

Q: Peter and His Wonder Team
Here is a simple question for you but I do not want to make a mistake with CRA in regards to Capital Gains. If I have a stock in the green and sell ...do I have to pay on just 50% of that gain? On the other hand If I have a second stock in the red of an equal loss and sell...does that just negate the gain entirely? On the other hand are gains only at 50% and losses at 100%? In other words how does one calculate capital gains in general?Thanks...don't want to get into trouble with the "Tax-Man"! Ha!Ha!

Q: AP.UN recently issued a second T3 for a phantom capital gain of $5 per share. Do we have to pay tax on it now, or only when when we sell?

Q: We bought a 2-year GIC through TD Bank but issued by EQ Bank. Interest is paid at maturity. When we received the T5 it included an amount for interest for the first year. It doesn't seem correct to be taxed on interest which is not yet received. Is this an industry practice? I've asked TD and am waiting their reply.

Thank you for your view.