Investment Q&A

Q: 5i recently answered Dennis' question on CDRs as follows: “CDRs are considered US holdings in all aspects, including withholding taxes and foreign securities reporting. ....”

All respects? My understanding is that CDRs are considered Canadian-situs (rather than U.S.-situs) holdings, which means that holding U.S. assets via CDRs would not affect a Canadian who might otherwise be subject to U.S. estate tax reporting and/or payment issues. Can you clarify this point?

Ted

Q: Could you give the breakdown of the deal that UEC bought out UEX from a tax view point? Not sure of the selling price for UEX.

Thanks Greg

Q: Hi,
I did not need the capital loss in 2022, so I kept the shares. Is there a way to know what is the status of the bankruptcy? Would that be from the site of Deloitte https://www.insolvencies.deloitte.ca/en-ca/pages/Xebec.aspx ?
Can we expect any formal news for the investors in 2023 ? Do XBC patents have any value ? Thanks as usual.

Q: I just read your recent answer about NXF.B and would like clarification about:
"There is withholding taxes on the direct US investments held in the fund"

i thought in RRSP there would not be withholding tax, is that just on dividends and the income generated on covered calls is treated differently?

Q: Hello,

I am interested in having a small position of ARCC in my RSP. I am not sure if this will be qualified and is covered under the tax treaty.

Wondering if you know if there would be a withholding tax within my RSP with this fund?

Thank you!

Q: When I put the subscription costs of 5iresearch for my income tax return under which category the money can be claimed? Portfolio manegement ?
Miroslaw

Q: I have US investments that pay a dividend some are stocks, some are LPs, and some trusts. I have just come across with holding taxes that are higher than I thought they were.

Where can I find details of how these are taxed for a Canadian holder.

Q: I’m looking to diversify a small portfolio in a TFSA by purchasing ‘some’ ETF’s with reasonable distributions and not too much risk to capital, the idea being that this is a growing ‘rainy day fund’. The most attractive ones, to me, involve at least some U.S. investments. I’m sure that the first thing you would say is that you are not tax experts. With that said, do you think that XHY’s income would be subject to the U.S. Witholding tax? And following that do you know of any online sources that list the tax implications of specific ETF’s re. Withholding tax? The most that ETF providers might say on their sites is that an ETF is TFSA/RSP eligible
.
I recognize that the tax does not rule out the utility of an investment. When would you ignore its’ presence for an investment? A long-winded question.

Q: Hi,
I am pretty confident that I am correct! But wanted to make sure.

I need to help our adult "child" to buy a place. (Bidding wars have disappeard and some sense of normalcy has returned. Prices are still at least 10% higher than normal I would say!)

If I take 10,000 out of my TFSA, on January 01 2024, I can put in 10,000+6500=16500. Correct? Assuming in 2024 TFSA contribution remains at 6500.

Correct me if I am wrong.

Mano.

Q: Hi There,
I just wanted to confirm that if you transfer a security from a cash account to a RRSP account, any accrued capital gain on the transferred securities on an in-kind contribution to an RRSP is immediately taxable to you, while any loss on such a transfer would be denied from being claimed as a capital loss.....is this correct!

If so, if you sold the security in the cash account and then transferred the cash to the RRSP, would you then be able to claim the capital loss?
Thank You,

Q: Good morning,

If the onus is on the taxpayer to adjust one's ACB on mutual funds every year when there is a return of capital ("ROC"), how likely do you think it is that the CRA has as good a handle on what your ACB is on a particular holding?

I am fine to do it, and have been doing it annually for years. But as I started the process yesterday for the 2022 tax year, I could not help but wonder if it really is worth it. It is such a manual process that I struggle with how the CRA could track something like this for every individual tax payer.

Q: Hi ,I hope you can help me with my question
If you own a GIC say. a. 5 year one and the owner passes
earlier ?Can it be cashed
or would you have to wait till the regular cashing date.to settle the estate.
thanks a lot
Margit

Q: If one trades a stock inside a registered account at a loss, does one still have to wait 30 days before buying back either inside or outside any account, registered or non-registered. Thanks

Q: Hello 5i,
It was mentioned that XHY should be kept in a registered account as it is foreign income. The dividend is shown to be paid in Canadian funds and the exchange is TSX.Where are the foreign income consequences related to holding XHY?
Thank you for your service
Stanley

Q: Hi,

Based on the questions pertaining to taxable dividends, and managing an income portfolio for my elderly parents, is there a substantial difference in tax treatment, if the above funds are held in a cash account? I was fortunate enough to get DIR.UN into a TFSA and am slowly moving AW into a TFSA as well. Do I take out the growthier names in the TFSA’s and move in the ETF’s or just let them go in a cash account?

Q: I have 100 shares of googl which presently is showing a loss of approx. $3400. Today I bought 200 shares of goog and would like to sell the googl for the tax loss, can I do this tomorrow and qualify for the tax loss? Because the buy today is goog and the sell of googl does this have any implication re the tax loss?

Q: Hi
I know that there has been lots of discussion on 5i about the cost base for Topicus when it was spun out from CSU. However, I've reviewed the questions and forums and I'm still confused. TOI has been sold in a non-registered account and now I need to determine the cost base for tax purposes. The brokerage shows $0. Is there a consensus on what the TOI cost base at spin out should be? Thanks for providing some clarity!

Q: In a recent response to me you linked to another answer in which you wrote “There would be no withholding tax in an RRSP account”.
I hold MDT in an RRSP and there is in fact a 25% tax withheld. Company is Dublin- based.

Q: Is the cost of currency exchange something that can be written off on taxes? And if it is, is it captured in the tax statements most brokers provide? And where?

Q: Can you explain the 30 day rule on buying back shares that have been previously sold . Is it 30 calendar days ...eg sold on Dec 28 2022 can i safely buy them back on Jan 28 or have to wait until Jan 29? Thanks