Investment Q&A

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?

Q: Good morning
What is the difference between these two and which is more tax efficient in a non registered account? Are the dividends basically as safe in either ?
Thanks
Jeff

Q: When I retired at age 60, I was told that I should drawdown my RRSP as much as possible before I started to collect CPP and OAS at 70. I have been doing this, but because my highest growth stocks (MSFT and COST) are in my RRSP, there has been no drawdown.

I know the general rule of thumb is to place your US dividend stocks in your RRSP. However, in my case I think I would be better off holding MSFT in my TFSA, and COST in either my TFSA and/or taxable account.

I would lose 15% of the MSFT dividend in my TFSA, but the dividend is so small, it doesn't matter.

COST is a little different because of the special dividend. If I put COST in a taxable account, I could recover the withholding tax when I file the following year although I would have to submit a T1135 if over 100K. But given that I anticipate most of the returns to be from price appreciation rather than dividends, it would be better in my TFSA up to my limit, with the remainder going into my taxable account.

Does this make sense? Thank you!

Q: Hello
A general question.
Are any REITs such as AP.UN, Royalty Funds such as AW.UN or any ETF's eligible to claim the dividend tax credit?
Thank you
Jeff

Q: what yield would one need from an interest income investment to be equal to an 8% dividend for Canadian tax purposes? Thanks

Q: Good morning,


I am not crystal clear on the most tax efficient account to hold each of the above listed ETFs and before moving any of them to another type of account, I would very much appreciate your guidance on the most tax efficient type of account to hold each of the above listed ETFs.

The above listed ETFs are all held in our family Registered (RRSP/TFSA/RESP) and Non-Registered accounts.

Thank you and I'll await your sage advice.

Q: Hi there,

What’s a Swap ETF? Seems like Horizons has some of them. Apparently they are very tax efficient in non-registered accounts and have higher than average yields?

What do you think?

Ok thanks!