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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: You recently answered a question about investing in US companies and being taxed if your holdings are above $100,000. Do the investments held in a RIF count towards the $100,000?

Ron
Read Answer Asked by Ron on February 16, 2022
Q: Further to Cal's question on taxation of the BAMR to BAM.A exchange: the BAMR website states the following:

The exchange would be considered a disposition of the Class A Share of BAM Re. A Canadian resident shareholder who disposes of a share of BAM Re via an exchange would recognize gain or loss equal to the difference between the fair market value of the BAM shares received (at the time of the exchange) and the adjusted cost basis (“ACB”) of the BAM Re Class A shares exchanged.
Read Answer Asked by Stephen on February 14, 2022
Q: Further to Denise's question, and Patricia and 5i's comments on flow-through shares, I thought I would add that there's a place called Bertov Capital Corporation and MLC Financial that sell flow-through shares that purport to eliminate all investment risk by disposing of the flow-through shares in a relatively short period of time and guarantees their tax benefits. I have no affiliation, and have never bought flow-through shares, but I thought that was interesting and was worth sharing.
Read Answer Asked by Christopher on February 14, 2022
Q: Would appreciate your guidance on capital gains reporting to CRA when a US stock in a USD trading account is sold - where does one obtain the relevant USD to CAD conversion rate if that is not provided on tax slips/statements?
Thank you.
Read Answer Asked by D on February 10, 2022
Q: Further to Denise's question Wednesday about seeking ways to reduce taxes when receiving OAS, I have found that the purchase of Flow Through shares helps reduce my taxes. I know they say Flow Throughs are mainly for those in the highest income bracket, but they help all tax payers reduce taxes payable . I guess it is a question of "how much" does it help
Read Answer Asked by Patricia on February 10, 2022
Q: You answered Ronald’s question of Feb 8 re tax implications of having more than $100K in US equities by indicating CRA form 1135 must be completed. You did not indicate if this was only applicable to non- registered accounts. Does it apply to registered accounts e.g. TFSA and RIF. Clarification would be appreciated.
Read Answer Asked by John on February 09, 2022
Q: Hi 5i team:
To calculate the adjusted cost base for shares held in a non-registered account that I wish to sell, do I include the cost of the same shares held in a registered account (TFSA)? Or are they considered two separate pools for tax purposes? Thanks for your help. Ron
Read Answer Asked by RON on February 09, 2022
Q: Are there additional tax implications for Canadians who own more than $100,000 in US equities?
Read Answer Asked by Ronald on February 08, 2022
Q: Hi,Concerning dividend tax credit on CDN Cies for an ETF in a non-registered account : What happens when this ETF includes a mix of canadian and foreign Cies : do we still get the tax credit on dividends for the canadian portion of this ETF ?
Read Answer Asked by Jean-Yves on February 07, 2022
Q: I know you are not tax experts but you probably have a decent understanding of the Lifetime Capital Gains Exemption. I just wanted to clarify one thing. If the company you owned qualifies, and the amount of capital gains is within the limit (lets say 250K), does that mean you pay ZERO tax on those profits? Or is it some sort of a reduced rate? Seems too good to be true. Thx
Read Answer Asked by Adam on February 02, 2022
Q: Do I have it right that dividends of ALL stocks ending with .UN (trusts) are ineligible for div. tax credit?
Thanks
jerry
Read Answer Asked by jery on February 02, 2022
Q: Hi
I put ZGRO in my non-registered account knowing that it had US and foreign underlying stocks but Google Finance was showing that it had no dividend, which makes sense for a growth stock. But once I bought it, I see that it has a small divvy. I'm not too concerned with the tax consequences but I suppose it should have been better to place this in an RRSP?

Thanks
Robert
Read Answer Asked by Robert on January 27, 2022
Q: good evening,

I have tax losses that I can harvest on these 2 companies but, I don't want to miss the boat if the market turns. What are the best proxies you can recommend or should I hold?

Thanks!
Read Answer Asked by Denis on January 26, 2022
Q: Hi Peter & Team,

It may be my imagination, but I seem to remember reading somewhere - in the Questions section, I think -that 5i has a tool to help us calculate the ACB of our holdings. Please tell me it's not wishful thinking....

Thanks for all your help.

Molly
Read Answer Asked by Molly on January 25, 2022
Q: In late December I transitioned my RRIF portfolio (~28% of total portfolio) from a mix of VGRO & XAW to all VRIF (objective primarily to derisk a bit (?) and to simplify required payouts.
I maybe didn't adequately consider the following implications in my decision? What are your thoughts about the exposure to possible ROC as part of the monthly payouts and the subsequent more-rapid erosion of the RRIF capital, given the current market turmoil.
Thank you.
Read Answer Asked by Lotar on January 24, 2022
Q: 30 days ago I sold AQN, BEP.UN, and SJ for tax losses, and replaced them with CPX, BAM and ADN, respectively, thanks in large part to your advice plus some other research I did.
Which of the "replacements" would you shed in favour of a return to the original holdings (as originally planned). I'm thinking CPX out/AQN (or BEP) back in, ADN out/SJ back in, but hold BAM and skip BEP (or AQN). Does that make sense to you?
Portfolio objective is ~ 8-10-year holds (except for harvesting tax losses occasionally) with dividend growth.
What comments would you have on the timing of these transactions in light of the current market turmoil?
Thank you.
Read Answer Asked by Lotar on January 24, 2022
Q: I have converted a RRSP into a RRIF this year and subsequently my mandated withdrawal and consequent income will be much more than is required for me. My portfolio is chock full of banks, utilities, reits and other solid dividend stocks ( think EIF, SPB ) , essentially matching the present required withdrawal amount. My non registered account has essentially the same composition.
I am considering taking the RRIF withdrawal money and incrementally buying more solid growth stocks such as BAM , TFII , WCN , FSV , etc. instead of higher yielding dividend stocks.
Your thoughts on this portfolio transition is appreciated. Derek
Read Answer Asked by Derek on January 24, 2022
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