Investment Q&A

Q: Hello Peter,
With the recent announcement of the tax bill in the US where the withholding tax could increase to 50 percent from the current 15 percent, is this only for non registered and TFSA accounts? I am assuming the RRSPs are exempt as there is currently no withholding tax on RRSPs from US domiciled companies.. Thanks for your service.

Q: Here is a part of the Globe and Mail article

"On Thursday, the U.S. House of Representatives passed the Republican legislation, titled the One, Big, Beautiful Bill, with a narrow vote of 215-214. If it becomes law, it will override the Canadian-U.S. tax treaty that has been in place since 1942.
The 1,100-page document includes section 899, a tax proposal created as a retaliatory measure against what the U.S calls “discriminatory or unfair taxes” of foreign countries, including Canada’s digital services tax (DST), which was introduced in 2024.

The U.S legislation is still required to be passed by the Senate and receive presidential approval before it can become law. The White House expects the President to sign the final bill by July 4.
Canadian corporations that receive dividends from U.S. subsidiaries are currently subject to a 5-per-cent withholding rate under the tax treaty between the U.S. and Canada, much lower than the statutory rate of 30 per cent.
But under section 899, Canadian companies would see their tax rate increase by five percentage points each year until it reaches 20 percentage points above the statutory rate, or 50 per cent. It would remain in place until the “unfair tax” is removed.
Similarly, Canadian individuals who own U.S. securities directly are subject to a 15-per-cent withholding tax rate under the current treaty, reduced from the statutory rate of 30 per cent. Under section 899, the withholding rate could ultimately rise to 50 per cent."

July 04 is not far from today. If US government impose such taxes and the Mark Carney Government failed to address it, it will impact my portfolio which is heavily dominated by shares of US corporations. Such bill may also tank US market as Candian have the largest share of foreign investment in USA. What would advise in such situation, wait to see whether Senate approved it and then President signs it or take action and encash a part of the portfolio?

Q: There is an article in today's G&M "trump's new bill threatens major tax increases for Canadian companies". Could you comment generally on how this may play out in various ways and sectors. And specifically to PRL, SLF, BAM, CSU, CLS and ENB.
Thank You and please deduct accordingly.
Tim

Q: Just read this in Globe and Mail - Canadian individuals who own U.S. securities directly are subject to a 15 per cent withholding tax rate under the current treaty. Under the new bill the withholding rate could ultimately rise to 50 per cent.
If you were me, what would you do???......tom

Q: Hi
How is Section 899 of the proposed U.S. 2025 tax reform expected to impact Lumine Group (LMN) in the short and medium term, particularly in terms of tax liabilities and profitability, given that it is a Canadian company operating in the U.S.? Do these potential impacts make LMN less attractive as an investment at this time?

Q: Would you need to have a US $ account to hold and what’s involved for a tfsa and are there any tax implications from withdrawal from tfsa?

Q: Regarding the proposed 5% excise tax on funds leaving the US, there was a comment that it may affect foreigners from investing in the US.......how would this affect a CND who holds US Stocks in a Canadian brokerage account?

Q: So in regards to Leon’s question on 5% excise tax on funds leaving the US ; this would apply if I sold my house in Florida and transferred the funds back to Canada ? Holly cow !

Q: Are you aware of the following. I assume it may impact ownership of American stocks

Section 112105 of the bill introduces a 5% excise tax on remittance transfers of U.S. currency to foreign countries.
• This tax would apply to various forms of money transfers from the U.S. to other nations, potentially affecting individuals sending funds to family members abroad, including Canadian residents.
• The bill is currently under consideration and has not yet become law.

For Canadians with U.S. assets or those who receive income from the U.S., this proposed tax could have implications if enacted. It’s advisable to monitor the progress of this legislation and consult with a cross-border tax advisor to understand potential impacts on your financial situation.

Q: In retirement I currently rely on my non-registered portfolio to provide about 80% of my income. Within this portfolio only 15% of the portfolio could be classified as dividend or income stocks (like CNQ, RY with 3-5% dividends). Thus far I have been creating income by skimming from my growth stocks, rebalancing when needed, and cashing in on my losers. While I recognize that a higher portion of dividend stocks would provide a greater sense of income certainty and less volatility, I have felt reluctant to forgo, what I currently believe to be, the potential for greater growth by focusing on the careful and patient management of higher potential growth stocks.
Question: From your experience, will I have a greater probability (not certainty) of creating more income in the long term (10 years) through this strategy or should I rely on a greater portion of dividend stocks?

Q: Hi,

I was looking to purchase some Tesla US this morning and I, for the first time, saw the Canadian CDR currency hedged option. Can you provide any guidance as to the preference of one over the other. (I do get that the currency risk (or alternately, reward) is reduced (or eliminated). Is there any other information should be aware of ?

Q: I have put a large portion of my cash in CASH and TCSH due to my reluctance to lock in the money. My question more on taxing of proceeds: are both taxed fully as income?

Q: Just following up on a question today regarding selling a stock in a non-registered account and buying it back in an RRSP or TFSA. I understand the superficial loss rules, but how would the CRA track a purchase in an RRSP if one’s RRSP trading records are not sent to them by one’s broker? My understanding from personal experience is that only non-registered account information is forwarded to the CRA.

Q: Re: Non-registered account. If a BUY transaction was done within the prior 30 days and now a PARTIAL SELL transaction is done resulting in a loss.....

QUESTION: Is the tax loss claimable or does the loss amount need to be considered superficial and added to the adjusted costbase of the remaining position? No further transactions would be contemplated for at least 30 days after the most recent PARTIAL SELL transaction.

Q: can i sell stock x from my non registered account and buy it for my tfsa days later
thank you

Q: This is just a comment : I don't 't hold any more CDN stock in a US nonregistered account in order to get us dividends with no fees ,since I noticed that it was complicated to declare. I rather hold US stocks exclusively in my RRSP , if I need to convert US cash in CDN, I rather use ETFs for converting large amounts for very low fees if ETFs are close to NAV. ..

Q: If I sell BN for a tax loss, can I buy BAM the same day?
Thx Judy

Q: Hi there you recently answered a question about which CDN companies qualify as Eligible dividends. Is it safe to say that all the “Brookfield.un” structures do NOT qualify?

Ok thanks.

Q: Earlier this month the CRA asked tax-filers to delay filing if they had capital gains because their system had not yet been fully readjusted for the capital gain flip-flop. Since then I have not heard anything more; do you know if they are now up to speed? Because of that delay request, I'm going to be late.

Q: Regarding the question about form 1042-S, I asked Perplexity "where to input numbers for form 1042-S. on American tax return. and it came up with a very good answer which I am not putting here as the answer is long and depends on circumstances.
Perplexity is a very useful tool and will answer complex questions with clarity