Investment Q&A

Q: same sector tax-loss strategy...What am I missing here...with the assumption that the banks move more or less in tandem...

If I sell BNS stock at a $30K loss and use the funds to buy BMO as a "placeholder", won't I be in the same position either way? i.e. after a 10% gain I would either recover my losses as the BNS stock increases or I would grow tax-free gains as the BMO stock increases (up to $30K)...

Surely for this tax loss strategy it is best to just stick with the company I most believe in, yes?

Q: Hi Peter and Team, your readers may be interested to know that Tim Cesnick's tax and finance articles published by the Globe & Mail are organized and freely available in one location on his website, ourfamilyoffice.ca/our-thinking/articles/ Similar to 5i, he is generous in sharing his knowledge and seems driven by the motto, 'wealth is good provided everyone is wealthy'. I thank you for your significant contribution my and my wife's progress in financial knowledge and literacy.

Q: Is there any difference in tax treatment between VFV and ZSP in a TFSA?

Q: I think there may be some confusion about my previous question re VFV and also a question posed by umedali.
I may have misunderstand, but you seem to imply that VFV would undergo double taxation (withholding) because it is an etf that holds another etf. Is that what you mean by a “second level” of tax?
I am not sure this is correct. The etf being held by VFV would be U.S. domiciled, which would not be subject to tax on the dividends it receives from U.S. companies. However, VFV, being Canadian, would be subject to tax on the flow through of dividends to it from the underlying etf. Then, after this, the dividends should flow through to a Canadian holder without further tax, since it is from a Canadian listed etf. So only one round of taxation. Unfortunately, they call it “level 2” taxation in that link you provided, which is about the most ambiguous label they could have possibly come up with.
As far as I can tell, double taxation would only come into play if the underlying etf held by VFV itself held foreign securities (ex European stocks).
Apologize if I’ve got this all wrong, it’s not very clear on the Vanguard website imo.

Q: For etfs like these held in a cash account, is the holder paying a withholding on the yield, in some way?
Is the tax withheld at the level of the etf provider, or would one see the amount withheld in one’s brokerage account.

Q: If i were to sell some preferreds at a loss, could I claim the capital loss if i were to purchase another denominations of preferreds from the same issuer within the 30 days .
thank you.

Q: If I sell a stock in tfsa, how long before I can buy that same stock in a regular account? Thank you.
Rose

Q: Are dividends paid by Canadian based REITS tax efficient? Or it is depending on a specific REIT ?
Thanks.

Q: Dividend tax credit : Do we still get the dividend tax credit for the canadian stocks included in an ETF that holds both canadian and international stocks?

Q: If I sell 100 shares of company x at a loss, can I sell another 100 shares at a loss within 30 days, and claim both losses?

Thanks

Q: If one sells a Sept put and buys it back at a loss does the 30 rule apply before you can sell another put (say Oct) on the same stock?

Q: For tax efficiency in a non registered account do you recommend HXS and HXQ over ZSP and ZNQ. For US dollars do you like HXS.U and HXQ.U.
For a long term hold what are your thought of HXT in this account?
Thanks

Q: Hello,
I made a silly mistake this morning: I intended to sell all of my 200 shares of CAE in my non-registered account for a tax loss. However, I didn't double-check before submitting my order and ended up buying 200 more shares. Within minutes, I noticed my error and sold all 400 shares.
Do you have any insight into how this will impact my income tax return? Will I still be able to claim the tax loss on the initial 200 shares?
Thanks,
Rory

Q: I was assigned a stock on which i sold a put. When selling the put i clicked the box for uncovered put. In fact, though, i did have the shares to cover it. I would like to sell them now to claim a capital loss. But I am not sure where i sit in terms of that. I am getting a little muddled but i think I will have to wait 30 days. No?

Q: Would you say selling VAB and buying HBB would be a superficial loss in CRA's eyes? Or are they different enough? They do track different benchmarks (by title, at least).

Q: I am an investor with a long-term view and have always oriented my investment decisions towards growth stocks. I'm retired and I'm starting to want to take less time and decision-making as I get older. I know you are not tax specialists but your answer will surely be enlightening.
I wonder what is the cheapest mode of taxable income between a capital gain and a dividend paid in a taxable account for a Canadian citizen earning less than $80,000 per year.

THANKS

Yves

Q: Can I sell my BNS from my cash account at a large loss and buy it back immediately in my TFSA account or do I need to wait 30 days in order to prevent penalty. Thx James

Q: Hi 5i Team - I am interested in buying more U.S. stocks and have a non-registered U.S. dollar account as well as a TFSA account in Canadian dollars. Are there any concerns over buying U.S stocks in the TFSA account? eg. Are U.S. capital gains and dividends still tax exempt in a the TFSA. Any advice as to preferences re which account to use would be appreciated.

Q: If investing in US companies that pay dividends, what is the difference in tax treatments if received in a non-registered account or RSP/RIF or TFSA? What is the preferred account to receive these payments? Thanks!

Q: I would like to know how all in one ETFs, that include bonds and stocks, are taxed in a registered account. Is there an advantage to these ETFs versus holding bonds separately which are taxed at a higher rate than stocks?