Q: One of your subscribers said this in a question answered today, "I own 500 shares of TOU. Because I bought them a couple years ago and trimmed as they rose, my dollar cost average on these shares is zero!!" Is dollar cost average different from book value and if it is not, how does it go to zero?
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Below is an email from Interactive Brokers.
"As a result of recent US legislation under Internal Revenue Code Section 1446(f), gross proceeds from sales of and certain distributions from Publicly Traded Partnerships ("PTPs") held by non-US tax residents (both individuals and entities) will be subject to 10% withholding starting on January 1, 2023."
It is not clear to me that the 10% withholding tax is on the distributions only or 10 % tax will also be applicable to the total proceeds amount when I sell it ?
The company involved in my case is ET but can also be applicable to other publicly traded partnerships.
Thanks for looking into this.
"As a result of recent US legislation under Internal Revenue Code Section 1446(f), gross proceeds from sales of and certain distributions from Publicly Traded Partnerships ("PTPs") held by non-US tax residents (both individuals and entities) will be subject to 10% withholding starting on January 1, 2023."
It is not clear to me that the 10% withholding tax is on the distributions only or 10 % tax will also be applicable to the total proceeds amount when I sell it ?
The company involved in my case is ET but can also be applicable to other publicly traded partnerships.
Thanks for looking into this.
Q: I know that for tax relief purposes it would be best to hold US investments(equities) in registered accounts. Due to age I am being forced to deregister and into unregistered and to a lesser extent TFSA's.
Employing ETF's for these and future holdings I have a question relative to ETF's that are sold on the TSX but actually hold units of similar US ETF's. Are these Canadian ETF's eligible for withholding tax relief and or Dividend Tax Credit?
Thanks
Employing ETF's for these and future holdings I have a question relative to ETF's that are sold on the TSX but actually hold units of similar US ETF's. Are these Canadian ETF's eligible for withholding tax relief and or Dividend Tax Credit?
Thanks
Q: if you have a drip on a US company . do they still deduct the non resident tax
Q: Which of these stock or ETF's (Bam.a, FTS, SLF, MOAT, VXC, XBB) in my non registered portfolio would you sell and then buy back in TFSA?
Thanks for your help.
Thanks for your help.
Q: Is it better to hold US stocks in a brokerage account instead of a TFSA?
Q: The purpose of the following question is to avoid problems with CRA and avoid pitfalls, traps &c.
(1) If tax payer withdraws all their Canadian $ from a TFSA before December 31, 2022 , I understand they can re-deposit the full amount after January 1 2023. Correct? (2) I understand they can re-deposit the *full allowable* amount in US$ (i.e. the US$ equivalent of all the Canadian $ that were just withdrawn). Is that correct? (3) If yes, is it the spot exchange rate that is used for calculating the amount available to put back into the TFSA? If yes, what exactly is the spot rate, what rate is acceptable under tax rules and regs ? What source should one use to get the exchange rate to use— that CRA accepts?
(1) If tax payer withdraws all their Canadian $ from a TFSA before December 31, 2022 , I understand they can re-deposit the full amount after January 1 2023. Correct? (2) I understand they can re-deposit the *full allowable* amount in US$ (i.e. the US$ equivalent of all the Canadian $ that were just withdrawn). Is that correct? (3) If yes, is it the spot exchange rate that is used for calculating the amount available to put back into the TFSA? If yes, what exactly is the spot rate, what rate is acceptable under tax rules and regs ? What source should one use to get the exchange rate to use— that CRA accepts?
Q: I have 100 shares and got a Oct 28 dividend of $249. Withholding tax was $87 with TD. Does a 35% withholding tax seem right?
Thank you
Thank you
Q: I have received from my financial institution a notice concerning the following coming regulation: "New IRS regulation 1446(f) is being enacted beginning January 1, 2023 that affect all Publicly Traded Partnership (“PTP”) holdings (including various Canadian and foreign issuers such as Brookfield LP)." Are you familiar with this regulation? Do you have any thoughts on how one should respond if one holds Brookfield LP units?
Very much appreciate the work you do and the information you provide.
Howard
Very much appreciate the work you do and the information you provide.
Howard
Q: Hi Peter,
If a capital gain occurs on a sale of an US stock (also listed under an US exchange) held in my non-registered account, would it be taxed as ordinary income at whatever my marginal tax rate is or taxed as capital gains rate, where ½ of the gain is taxed at 50%?
Thank you,
Roger
If a capital gain occurs on a sale of an US stock (also listed under an US exchange) held in my non-registered account, would it be taxed as ordinary income at whatever my marginal tax rate is or taxed as capital gains rate, where ½ of the gain is taxed at 50%?
Thank you,
Roger
Q: hello 5i:
my question regards RRIFs.
Next year, I turn 71 and will need to convert my RRSP to a RRIF. OK, so far.
Question 1: for withdrawals from the RRIF, what is the date that the withdrawal is based on? One source told me it was based on the amount on January 1rst, but if I don't convert until later in the year eg October; is that still true? Or is is January 1rst of 2024, and if so, how can I make withdrawals in 2023 if I don't know the exact amount?
Question #2. If I specify that I wish to receive income twice yearly, June and December: if I don't convert until October, does that mean I only have to take out half the yearly amount? Or, do I have to take out the full amount, regardless of how many times per year I've specified as withdrawals.
thanks
Paul L
my question regards RRIFs.
Next year, I turn 71 and will need to convert my RRSP to a RRIF. OK, so far.
Question 1: for withdrawals from the RRIF, what is the date that the withdrawal is based on? One source told me it was based on the amount on January 1rst, but if I don't convert until later in the year eg October; is that still true? Or is is January 1rst of 2024, and if so, how can I make withdrawals in 2023 if I don't know the exact amount?
Question #2. If I specify that I wish to receive income twice yearly, June and December: if I don't convert until October, does that mean I only have to take out half the yearly amount? Or, do I have to take out the full amount, regardless of how many times per year I've specified as withdrawals.
thanks
Paul L
Q: Hi 5i: Further to Andre's question today, do you have to wait 30 days to repurchase a stock in a registered account if you sold it for a capital gain?
Q: This is a follow-up question where you suggested, "we would see no need to crystalize a gain on RY JUST to offset a loss. There may be other gains in the future, or one can offset a gain in prior years". I had a significant capital gain in 2021, If I don't sell RY to crystalize a gain in 2022, do you think that offsetting the JE loss in 2021 would be better than offsetting the loss in the future? Taxwise, my income is likely to be lower in 2022-2023 than in 2021, where I claimed significant capital gains.
Q: Do you have to wait 30 days to rebuy a stock inside a RRSP,TFSA and RESP?
Q: I need some tax-loss advice. I would like to sell Just Energy with a loss and the loss can be covered with a gain after selling RY. After selling RY, I would like to buy RY back in a couple of days. Is there any risk in realizing the loss and buying RY a couple of days later? What is your advice? Thanks.
Q: I purchased AQN a couple of years ago and when it hit around $10 a week or so I purchased again doubling the amount I own. It is still not a significant amount of my holds.
However, I am wondering if I could sell the original amount purchased couple of years ago at a higher price and claim a capital loss for those shares even though I have purchased more recently.
However, I am wondering if I could sell the original amount purchased couple of years ago at a higher price and claim a capital loss for those shares even though I have purchased more recently.
Q: Hi, We sold some shares to harvest capital loss in Cash Non regd account, 3 weeks ago. Can we buy CPX shares in our RRSP accounts, without waiting for 30 days ? Thanks
Q: Just to be sure, the 30 days required by CRA before re-purchasing a stock sold for capital loss purposes starts ON the day after the trade date as day one ? or the day after the settlement date ? and we can buy again ON day 30 or 31. ?? I know you've answered this one a hundred times before but no easy way to find the answer !!
Many thanks for all you do. John
Many thanks for all you do. John
Q: What date would you consider the height of tax loss selling.
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Brookfield Renewable Partners L.P. (BEP.UN)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
Q: I plan on journalling these stocks to my US account because the dividends are paid in $US. However, I am confused as to the appropriate listing name for BEP.UN on the NYSE as it appears to be the same as the one for BEPC, namely BEP. Is that correct?
Secondly, can you switch BEP.CA to BEP.UN:CA (or vice versa) in a non-registered account without the transaction being considered a disposition for tax purposes?
Appreciate your insight.
Paul F.
Secondly, can you switch BEP.CA to BEP.UN:CA (or vice versa) in a non-registered account without the transaction being considered a disposition for tax purposes?
Appreciate your insight.
Paul F.