Investment Q&A

Q: I have both BEP.UN and BEPC in an unregistered margin account and for simplicity sake would to only hold one of them. Is there any particular advantage of one over the other in an unregistered account? Thanks.

Q: Lots of discussion on holding BEP.UN in a RRSP or a RRIF, but what about a TFSA?
Thanks for your answer….JC

Q: I like the high dividend paying shares of NYMT. Do you see any reason for a Canadian like me to pass on buying it for my RRSP.
After some research it seems to me that I would not pay tax on the dividend payout received in an RRSP. Can you verify that?
Other well respected dividend paying shares such as Bell (BCE) and Enbridge are Canadian companies so I could hold them in my TFSA without any tax implications. I am also noticing CM (Cibc) for long term RRSP or TFSA hold. BNS.TO, Also Telus KEY.To, Hydro one I won't mention Rogerw because I just don't like the way they do business. VDY.To. ZWP.TO covered call ETF. ZWE.TO is another one.
looking to get creative and make my own portfolio but not to proud to buy an ETF for income. I know you have an income portfolio I appreciate that and will look through it again. Looking for feedback for this strategy. I am a 50 year old Canadian citizen living in Canada looking for long term holdings.
Happy New Year - all the best.

Q: "joint venture between GIC and Dream Industrial Real Estate Investment Trust will acquire all of the assets and assume all of the liabilities of Summit and the unitholders of the REIT (the "Unitholders") will receive $23.50 for each outstanding unit of the REIT (each, a "Unit") they own in cash by way of a special distribution and a redemption of Units, subject to applicable withholdings."

If I sell SMU.UN now I will have a very significant capital gain in 2023,what happens if I keep it until the special distribution ?I suppose it will also be a capital gain?any other choice here ?

Q: I am a 56 yo retiree with no intention of going back to work. All my income comes from my investments. I generally pull out each year the cash the investments generate without needing to sell any shares as that is more than sufficient for my lifestyle. Is there any benefit to converting my RRSP (or part of it) to a RRIF at my age? Other than no withholding tax - which I don’t really view as a benefit since the tax has to be paid anyways - is there any reason to convert prior to being required to do so? Thanks in advance.

Q: Hello All,

Well one more day and we can turn the page on 2022. My thanks for your service and remaining composed through difficult times. Your professionalism is what keeps me glued to the service.

My question pertains to TOI and SHOP that I hold in a cash account. I want to move them into my TFSA where I hold the majority of my position in these companies. I’m down about $800 on shop and $600 on TOI. If I transfer them I lose the tax loss. If I sell and wait the 30 days I spend 40 bucks to make the trades and would have a 1400 capital loss which equates to net 700 to claim. Then I have to hope that the stocks do not rise to cancel out the gain. Any suggestions? If I buy first and sell after 30 days, I run the risk of the stock dropping and I’m even worse off.

Any suggestions? I am tempted to just transfer the stocks and forego the tax loss which is minimal.

Q: I received a Dividend Distribution Reminder from RBC regarding a NNRG dividend...$4.18/share. Ex-div date of Dec 29/22 and payment date of Jan 09/23. I've kept the email and reread it several times.

I would have expected the share price to drop roughly $4/share on Dec 29, but I have seen no share price movement anywhere near that level.

Can you shed some light on this? I have gone to Eric's website and see no dividend notifications. Could this be a mistake somewhere in the RBC system (doubtful)? Or...is there a chance I might receive the cash equivalent of the dividend on Jan 09/23 (I know...pipe dream)?

Confused...thanks for your help...Steve

Q: Re: Rodney's question of Dec 22, in-kind transfers. I am a BMO Investorline customer and have made in-kind transfers from my BMO RIF to my BMO TFSA both this year and last year. I did this by phone, The BMO staff member was helpful and advised me that while I would still pay tax, by making an in-kind, rather than cash RIF withdrawl there would be no witholding tax.

Mike

Q: I will be making a rif draw in 2023. I am looking at three options ----transfer cash --- transfer a stock in kind with say 50% gain ---- transfer stock in kind with a 50% loss. Ignoring trading costs does any option have a better tax efficiency? I am very worried that you will say no.

Q: my public service announcement

NEVER, EVER, EVER BUY ANY BROOKFILED COMPANY IN ANY TAXABLE/NON REGISTERED ACCOUNT

EVER

i own several of them and have generally been happy with the mgmt and results

but, between delayed tax reporting, offshore, foreign income t5013 reporting; t1135 reporting AND basically obtuse overall reporting, i recco you put them in a registered account where all that nonsense 'disappears' into the ether of non reporting............

thank me later

merry christmas

Q: Does the US have a similar situation re last trading day to claim 2022 losses as Cda??

Q: Merry Christmas and Happy New Year all at 5i
This is another crystal ball question. I have a sizable loss on Shopify and today is the last day to claim it for this year. I am caught in the headlights a bit, though, thinking that January could be a very good month for stocks and that i would be better to wait until towards the end of January. What kind of chances do you give it for rising a lot in January?
Thanks

Q: WHAT IS THE LAST DATE THIS YEAR TO SELL CANADIAN AND/OR US ST0CKS AND GET A TAX LOSS FOR THIS YEAR 2022?
WISH YOU HAVE A SUCCESSFUL COMING YEAR 2023

Q: If one were to sell BNRE or BN at a capital loss and purchase BAM with the proceeds would this stay onside with 30 day rule?

Q: We just received notice from our broker Questrade. Some securities, notably LPs will be affected by an extra tax on dividends, and a 10% witholding tax on sales of said securities. The list, https://email.questrade.com/NDE1LVRSVS0xMzEAAAGI2aUK0lRlxgseeoLC1Eghn1II_fBto39UgUhfF225XXBg6TyuY3qXPyY6am5dK1dIACvlnN0=
is quite large and include even names like Lazard,LAZ which i believed was a regular trading stock.
Will that affect holdings in RSP accounts? Is there to be a rush to the exits from a number of these? If it affects holdings only in regular investment accounts, would it be a good opportunity to to catch a few discounted names in a registered account?
Sorry for a lengthy and intricate question.
Thank you and Merry Christmas.

Q: Hi,

Now that the dust has settled and the BN/BAM spinoff is complete, I have the BN shares in my accounts but wanted to confirm the split and avg. costs showing before and after in my brokerage account and if its correct. Sometimes when they manually update avg. prices for these kind of things, they enter it wrong.

Before spinoff and after spinoff shares and avg. cost:

Account 1: BAM 393 shares @39.09 ------- BN 393 shares @33.11, BAM 98 shares @29.50

Account 2: BAM 601 shares @51.60 ------- BN 601 shares @33.11, BAM 150 shares @29.50

Account 3: BAM.TO 151 shares @44.97 ---- BN.TO 151 shares @45.22, BAM 37 shares @40

Account 4: BAM.TO 150 shares @65.64 -----BN.TO 150 shares@45.22, BAM 37 shares @40


1. For account 3 and 4, if I had 151 shares and 150 shares and divide by 4 to get new BN shares, I get 37.75 and 37.50 shares after. Do brokerages usually round down? I thought I would have gotten 38 shares of BN after the spinoff.

2. When I compare my cost basis before and after, it should be the same correct? Looks like they assigned these prices of $33.11, $29.50, $45.22 and $40 to each of my BN and BAM shares after. Where did they get these from and if incorrect, what should they be after for BN and BAM?

3. When I look at account 2:
Before: BAM 601 x $51.60 = $31,011.
After: BN 601 x 33.11 = $19,899, BAM 150x$29.50= $4,425 (Total = $24,324)
Why did my cost basis go down from $31k to $24k? Something is not correct here.

I would like to contact my brokerage and have them update my avg. cost for BN and BAM but wanted to clarify these few things before I do.

Thank you for your help!

Q: Dear 5i,
If I understand correctly, BEPC-TO and BEP.UN-TO are identical companies.
In a perfect world they should trade at the same price and thus offer the same dividend yield. If this is the case, does it matter which one a person should purchase in their registered accounts like a RRSP? (ie would there be any witholding taxes with either one?)

thanks

Q: Peter; Just a note re Andrea’s question on in kind transfers. I just requested a in kind transfer from my RRIF to my TFSA. My broker, BMO Investor Line told me it’s not allowed- yet when I did some research it clearly is. I realize you’re not tax experts but I would appreciate your take- plus maybe ask others if they have been refused also? Thanks
Rod

Q: Referring to my earlier question today, would using some the tax loss sale proceeds from selling BBU to buy some more BAM violate CRA similarity rules on repurchasing?

Q: What is the last day to sell for tax loss?