Investment Q&A

Q: Last winter I was lucky enough to buy some NVDA shares. I do need USD for Florida. My question is, I decided to sell enough shares to cover my initial cost. I am now playing with just profit. What would my adjusted cost base be. O or the original price of the shares. It is in a TFSA.

Q: I want to start doing an RRSP meltdown. I'm considering moving ZID in-kind to my non-registered account but was wondering about the implications. Since this is a Canadian-based ETF, I don't think it has any effect on having to fill out Form T1135, Foreign Income Verification Statement, does it ?

Acknowledging that 5i staff are not tax experts, do you recognize any other caveats that one should be aware of for having this ETF within a non-registered account? Thanks !

Q: I've read some Q&A on tax-loss selling on this stock, and others in the past. If one were to do this with the plan of buying back - say BCE in this case, is this not a form of market timing that could go very wrong if the price were to suddenly rise? I don't see the benefit, if this plan did not work as anticipated (?)

Q: Hello Peter,
I hold Berkshire in my rrsp and in the sad event Warren Buffet passes away, i do not see any tax implications (assuming the company splits or has spinoffs) until i withdraw money from the RRSP. I am thinking of investing in the CDR for Berkshire class B shares in my TFSA, Would there be any tax implications if the company structure changed? Thanks very much.

Q: Hi Team,
If YOU had TFII and ATD at a loss in an unregistered account, would YOU sell to claim the tax loss now? Would you rebuy after 30 days? Can you also please explain the rationale behind the answer. Thanks

Q: My AW.UN shares were exchanged 1:1 for AW Newco.

As this was an "exchange" should my broker be showing a capital gain?

If there is indeed a capital gain what is the share price that should be used?

My broker, TD, has calculated my capital gain based on a share value of $43.08 and used this price as my average cost base for Newco.

How do you suggest I approach TD on this? Is there somewhere where I can conclusively go to get this information to provide them? Banks aren't keen on admitting their errors...

Thanks

Q: AMD shares fell over 15%, apparently due to the company issuing forecasts that were noticeably lower than analysts’’ expectations. I bought AMD close to highs and have a substantial loss in a non-registered account. I thought I could harvest the very large tax loss and buy back after 30 days. However, given the company’s respectable record, wide moat (good products that are expected to stay in demand) shares could easily surge in a month or two in amounts higher than any tax-deduction benefit one might realize. I would appreciate your views on the short-term likelihood of AMD shares making a quick recovery. Due to my own biases, I am likely mis-calculating the risk-reward equation.

AMD’s financial results were good vs. estimates. Management gave credible answers and logical comments in the earnings call (although Lisa Su , CEO, did give self-contradictory remarks in media interviews). Although AMD is far behind NVDA , would you agree that its research and development is such that it will produce, after 2025, chips that will compete extremely well? Wishful thinking on my part ? The above is a leading question, so I would appreciate your thoughts independent of my preconceptions. :ao:sab

Q: Divid Milstead in the Globe writes that BAM is considering moving it's HQ to New York. Could you comment on likely implications for Canadian holders? If this is a go; what kind of advance notice might be customary?
Thank You.
https://www.theglobeandmail.com/business/commentary/article-as-brookfield-seeks-us-stock-index-membership-it-could-continue-to/

Q: I've still got my now worthless XBC shares in my trading account. Seems its taking years to finalize the bankrupcy. Is there any benefit to leaving these shares or is it best to get rid of them and claim the loss? What do I ask the brokerage to do to get rid of these shares to produce the loss statement, since I can't sell them on the open market? Thx

Q: Are there any particular tax implications on the yield for these 2 ETFs ?

Thanks

Q: In your answer to Barbara that appeared this morning, you reference that a Canadian who holds dividend paying investments could receive up to about $48000 tax free in income. Could you clarify this for me as I have heard that to apply, all of a persons income must be from dividends. Is this true? My wife and I have no employment income, but we do have a mix of dividends, interest, capital gains, and rental income. Trying to understand how this works.
Thanks!

Q: I have been fortunate enough to retire before my husband and we live off of his salary. Currently I have over $1M in Registered trading accounts. In this scenario, is it typically better for a person to start taking money out of their RRSP when they have no income, and then move these funds to an unregistered trading account to grow, or is it better to leave this money in a registered account, take a large tax hit later, and let it grow sheltered until needed? As always, your comments are very much appreciated.

Q: What happens to a spouses TFSA if they pass away,and you are the registered agent for the account.My question is can you continue to trade ,or do nothing and could the fund continue to grow tax free

Q: FYI. Re question from Denise of Oct 11 regarding 1994 ACB election with CRA. My experience is that CRA has maintained details of these elections and can provide them.

Ian CPA C.A,

Q: Greeting, 5i. I will turn 71 on December 31st, 2024. I understand that I must convert my RRSP to a RIF in the year I turn 71 but that I do not need to make withdrawals until one year after I open the RIF. Does that mean I must make the conversion in the next ten weeks of 2024 and can postpone withdrawals until 2026, or can I make the conversion in 2025 and postpone withdrawals until 2027? I look forward to your reply. Thank you.

Q: Have read previous answers about the ACB being the price on day one of trading or $30. My broker has has assigned a ACB of $12.99 per share and reduced my ACB of TRP by #shares X 12.99. Which version is correct?

Q: Recently I transferred in kind shares of Bell. From my unregistered account to a TFSA.They were deemed to be sold at a loss.Can I claim the loss?.And also my shares of MG that are at a significant loss in my TFSA which I if needed to sell .If I transfer them to my nonregistered account will they be deemed to be sold in TFSA and I would not be able to claim the loss? As allways thanks Larry

Q: Once upon a time…..(1990) I bought shares of TRP. Many events around TRP since then, including recent SOBO spinoff, but I still own some of my original shares. You might be too young for this, but in 1994, a change was made to Capital Gains Exemptions law. We could lock Capital Gains as of Fev22,1994, in filing Form T664, and claim them later by increasing ACB. I still have my personal notes for this!. By any chance would you -or your subscribers- know if CRA keeps records as far as this? CRA web site shows records for 2012+. In 1994, tax returns and any other documents were made on paper of course. Thanks again.

Q: Hello 5i
I notice that you have often mentioned Harvest etf’s in relation to tax efficiency. I haven’t paid too much attention to this in the past. But, now I am interested. I have searched the questions but don’t seem to find what I am looking for. Currently in a non-registered account I hold some vbal. I don’t like the taxes i will pay, though. I want to switch to something more tax efficient.

How exactly does Harvest manage not to require to pay taxes on dividends? I know they re invest the money but i don’t know how that works.

What would be the downside? Higher mer, i imagine. Anything else?

I would be looking for a general market etf, either Canadian or US, or both, if available. I would greatly appreciate your recommendations.
Thankyou

Q: Please advise if HAMILTON covered call ETF (QMAX, EMAX and others) eligible for the Canadian dividend tax credit.

Thanks for the great service