Investment Q&A

Q: Has tax loss selling started? What is your take on Tax loss selling in this most unusual year.?

Q: In your reponse to Cecil today you state: "VOO will be more tax efficient as it is US-listed whereas VFV is Canadian-listed. Foreign withholding tax on dividends will be exempt." I was under the understanding that there is no foreign withholding tax on dividends in an RRSP.

Q: Hi 5i
Concerning claiming a 5i membership for tax purposes. If one buys the whole package, is that claimable. Or, just the amount charged for the question and answer section?
Thanks

Q: I am planning to sell these names for tax-loss. Should I buy a replacement for each to protect against a turnaround in the next 30 days, or do you think I'm better off holding the cash for that period given the current outlook for equities. If you still recommend replacements can you offer a suggestion for each - or perhaps only for some? Thanks.

Q: Today I harvested a capital loss with ZRE and plan to rebuy after 30 days. I wanted to double check the earliest day I could rebuy, should I wish to do so.

"Sale" date was Oct 18 and the "settlement" date would be Oct 20. I understand it is "calendar" days, so I believe the earliest date from the sale date would be = Nov 17.

Agree?

Thanks...Steve

Q: Hello,
Which of the Brookfield companies quality for the dividend tax credit?
Also, which Canadian dividend ETF’s also quality for the dividend tax credit you would recommend?
Thanks for your great service.

Q: Per below capital gains consider an income. Does the below dividend criteria is consider in Toronto, Ontario


It is my understanding that in a non-registered account I can receive up to +/- $50,000 (BC/Fed combined tax rate) in Canadian dividends without being taxed. Is that correct?
If so, I was hoping that you could provide a list of 20 Canadian dividend stocks that you have confidence in that have:
1) a 4% yield or higher
2) are not in or associated with the Oil/Gas sector
3) hopefully enough growth to keep up with inflation

Thanks!

Asked by Brian on October 11, 2022
5I RESEARCH ANSWER:
This is true, with variability based on province. The dividends also must be the ONLY source of income, otherwise some tax will apply. RY, TD, BNS, MFC, T, ABX, SLF, QSR, FTS, AEM, POW, KEY, ENB, BCE, AQN, GWO, FN, EIF, IGM, ET, CIX

Q: Hello 5i,
I have posted a question on the Forums under the Tax and F/X Strategies and I would appreciate any thoughts or feedback.
Thanks,
Cheers,
Mike

Q: Tax loss harvesting... I currently hold worthless warrants in my portfolio that I would like to harvest prior to year end. They are currently worth .015 due in Feb - 23... with zero demand. How can I crystalize the loss prior to December 31?

Q: Can you claim a tax loss when moving between hedged and unhedged versions of the same ETF? Thanks

Q: I am currently in a loss position with ZEM. Would Revenue Canada allow me to claim a capital loss if I sold ZEM and immediately bought VEE?

What are the rules as to how Revenue Canada determines whether a new investment is sufficiently different to allow a capital loss?

Thank you for this wonderful service and the excellent advice.

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