Investment Q&A

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.

Q: After receiving a t3 from a high dividend paying etf I was a bit suprised to see a bit over 60% of the distribution was Return of Capitol - as I see it basically getting my own $ back on that 60% portion. Sitting with my accountant I walked away with more questions than answers, for instance would a pure play dividend stock paying half the yeild as this etf be a better investment, what happens if I hold this for years and my intitial investment is returned, do I still get the 10% distribution? Is the ROC a mute point if this etf is held, in a registered account? I realize these questions may not be in your area of expertise, also am thinking many people are buying these high paying ETF's not realizing a big portion of the advertised yield is ROC.

Q: One of life's little mysteries. BMO Investor line shows me as having" interest income" from BIPC and BEPC but no dividends. These are not the limited partnership shares. BAM shows as paying dividends. I have a call into BMO but wonder if you can shed light on this. Many thanks Al

Q: I want to see something for a capital loss. Would receiving a dividend on March 28, disallow the loss?
thanks

Q: Hi Peter,
Is there any US withholding tax if this ETF is held under a TFSA or FHSA?
Thanks,

Q: I realize that you must wait 30 business days before you can repurchase a stock that you sold for a capital loss but are there any rules about the timeline on when you purchased the stock before selling it?

Q: how long do I have to hold a stock before I can sell it for a capital loss in Canada?

Q: Please give me some guidelines about the type of companies preferred in TFSA, RIF and non registered accounts. I am particularly iinterested in guidelines related to tax efficiency and it's overall effect on results.

Q: I have automatic dividend reinvestments (DRIP) in my TFSA and RRSP but not in my nonregistered account. If I sell a fund in my nonregistered account for a tax loss but I also hold it in my TFSA, will the capital loss be disallowed because of the drip in my TFSA?
thanks

Q: When borrowing money to invest in stocks, can etfs holding US companies such as VGG, ZDY, ZUD etc be used with the borrowed funds and the interest still be considered deductible for tax purposes? Or do they have to be income producing Canadian stocks or etfs.
Thank you

Q: Federal budget is April 16th. and the NDP is proposing the capital gains percentage to change from 50 % to 75%.Since the NDP seem to be running the government these days and Liberals always looking for more money to spend, what would your guess this may happen ?

Q: Should I be worried about a capital gains tax increase in the next fed budget?..what could I do to reduce my capital gains if so implemented?

Q: Does every disposition of shares during a year have to be reported on your tax return even if you still hold a position in the stock at the end of year-end?