Investment Q&A

Q: I'm down 33% on TXF in an unregistered account.

For tax loss harvesting would ZWT be considered an acceptable proxy for TXF by Revenue Canada? If they are too similar, what do you feel would be an acceptable proxy?

Alternatively, if there isn't an acceptable proxy would 5i suggest leaving the proceeds in "cash" on the basis that it is doubtful that TXF would increase enough in 30 days to offset the tax gain?

Thanks!

Q: I have a bunch of MG:CA. that are underwater,contemplating selling and buying LNR:CA for tax losses.Would you do it? when and why? Thanks

Q: I'm thinking of replacing AQN (held in USD non-registered account) with AQNU to harvest a tax loss. Would this pass CRA rules?
Thanks
Peter

Q: Good afternoon,

I'm planning to sell BNS for tax loss selling and will buy BAM.A with the funds. I'm also planning to sell a put (about 3-6 months out) on BNS for the purpose of collecting the premium. From what I can tell, this would not be an issue on the tax loss side given that I don't necessarily get to buy the shares, correct? I'd also be ok with having to rebuy if called.

Please let me know if there's anything else I should consider wrt this idea.

Thank you for this service, as usual,
Lisa

Q: I notice no questions about CVX since last year. I have a substantial loss in this percent wise but a small position. Any point waiting a month or two to see if the market recovers or would you take a tax loss now?

Q: I own DIR.UN in my non-registered account. To be more tax efficient I would like to sell and repurchase it in my registered account. Can I still claim a tax loss in this situation? Do I need to wait 30 days after the sale before repurchasing it in the registered account?

As usual, thanks for your service.

Q: Hi 5i:

I am concerned about the proposed taxation changes for REITs that are tabled in the government (Canadian). How do you think these changes will affect investment in the REITs and their equities?

Q: Hi, if I were to move shares, which have incurred a capital loss at the time of the move, from my cash account to my rrsp, would I be able to claim that capital loss? Thanks.

Q: hi,
do you know if there is a limit on the number of times one can sell a given equity for a tax loss in a given year, and get the tax advantage?
cheers, chris

Q: Hi...further to my recent questions regarding Eric's NRGI ETF, I just want to make sure I understand the tax treatment of this ETF before I purchase it.

According to his website, NRGI is 82% USA and 18% Cdn as of Aug 31/22.

Please correct me if I am wrong:
1. Any share price appreciation will obviously be taxed as Canadian capital gains.
2. Any dividends from a Canadian company will be taxed as Canadian dividends and received the dividend tax credit.
3. Any dividends from a USA company will be taxed as interest income.
4. Any "covered call" dividends from either a USA or Canadian company will be treated as Canadian capital gains (not 100% sure on this one).

So, ignore the share price appreciation aspect for now. Eric has stated the target distribution is 7%.

My conclusion is that the distribution could then be split into roughly 5% dividend (82% of which would be taxed as interest income) and 2% covered call (taxed as capital gain).

Q#1 = So, is it safe to say that the ETF would be taxed with roughly 4% being interest income tax, a negligible amount of Canadian dividends, and the vast majority being taxed as capital gains (share price change plus CC-dividend impact)?

Q#2 = So, I believe it still makes sense to buy this in a Cash Account...do you agree?

Thanks for helping me understand this one....Steve

Q: I know your standard advice in terrible markets is do nothing, but I think I read you advising another member it might not be a bad idea to sell some names like Google and Amazon and buy them back after a month. Isn't this risky?

Q: I see a lot of questions about tax loss selling with the intent to re-buy after 30 days, and I've never utilized this before. I have approx 250k in an unregistered account across 15 companies, and I'm obviously down on many of them (a lot of tech). Is it okay to not try and take advantage of tax loss selling in this way, given that I'm planning to hold many of these name for at least the next 3+ yrs, and potentially much longer (like 5-10+)? I will be continuing to add to my unregistered account (since I've maxed rrsp and tfsa), and hope to become an increasingly savvy investor, but I'm a bit scared of screwing up tax loss selling to this end, especially at this time with the current volatility. So, would you recommend that this is something I must add to my "arsenal", or just ignore it for now? Are there many successful investors that stay away from the sell then re-buy in 30 days approach all together? Thanks!

Q: Hello, thinking of selling these stocks for tax loss reasons (10-15%). Although one would think a very possible recession with the related decrease in earnings is already baked in share prices, I am afraid it is not entirely so. I intent to buy these stocks back in a month, hopefully with a lower SP. Is the tradeoff between tax loss and the risk of share prices jumping much higher worth it? Thanks

Q: Thinking of selling APPS for tax loss. Does it make sense to purchase AT (Acuityad) on US exchange as a temporary substitute.

Q: VNQ has substantial amount of return of capital. In RRSP, is there any tax liability for canadian owners?

Q: I want to crystalize tax losses in my non-reg account. Can you please suggest good proxies for IYT, VTV, VEA, and IWO? Thanks.

Q: Hi

Is my thinking correct?

Based on the above, next year the Government will be being paying more in OAS and in some cases GIS (the Old Age Pension supplement for low income seniors).

In fact some people who are having their OAS clawed back as of July 2022 based on their 2021 income, can apply to have there OAS recalculated for the period July 2022 to June 2023 should they expect lower income in 2022.

Thank you for your time

Thank you

Mike

Q: Is the Dream Industrial dividend taxed as a Canadian source?

Q: Retirement and tax planning to maximize net dollars during retirement are of interest to me. Can you suggest a few resources that do a nice job with strategies on these subjects. Thank you

Q: In Canada, on death of an individual, are all registered plans (LIF, RRIF) of that person considered sold and added to their estate for tax purposes. What about RESP and TFSA plans? thanks