Investment Q&A

Q: I hold Costco in my TFSA and with the news of a special dividend I am debating on selling ahead and rebuying after to avoid losing 15% withholding tax as I am assuming a special dividend is subject to the same 15% withholding treatment. Thanks

Q: Hello,

As it pertains to trading in a TFSA account, I recall an answer to a question where you felt that 4 to 6 trades a month may pass muster with Rev Can.

Is there a way of seeking clarification from the Rev Can so that one is apprised, or does that just draw attention to oneself?

Q: Could you provide 5 or 6 names of solid/dividend paying companies that took a hit from tax loss sales in Nov. 2019 timeframe? (if there were any)
Thank you

Q: Could you suggest 5 or 6 solid/dividend paying companies that may take a hit from tax loss selling? Thank you

Q: Hey team, I think you misunderstood Jacob’s tax question. He WOULD have to declare his capital gain on his growth stock. He is not excused from this just because he rebuys the same stock shortly thereafter.

Q: I noticed you said that you have to wait 30 days to rebuy suncor after selling it for tax-loss. Is it the same for declaring profits? If i sell a growth stock for a profit, but rebuy it the next day, do i have to declare it?

Q: I want to take a tax loss on SU. But I want to stay in the market. What do you think of using IMO as a proxy to replace SU? Or just wait 30 days?

Q: Greetings 5i team,
This question is regarding tax loss selling. I have a major loss on su.to in my Margin account. I want to keep the stock for the long run. My question is is it possible to file tax loss without selling or should i sell and buy back. If so how soon can i buy back?
Thank you
Ravi.

Q: New customer to 5i. Retired, 62 years old, married, investments held jointly, 65% of low 7 figure DIY portfolio made up of Cdn equities, rest in cash/bonds. 90% of equity held outside of SDRSP accounts. Question – for many years, we’ve been receiving dividend income that is eligible for the tax credit and have paid virtually zero income taxes. I am aware that we are not at all diversified internationally and have broken this fundamental tenant in investing. But since taxes are likely the single biggest cost in our lives, we believe our lack of int’l exposure (and thereby probably missing out on better returns), is less important than our tax savings. Is this stance short sighted ?

Q: What are your thoughts on AUVI please? Thanks

Q: I am planning on selling some of my losers for a tax benefit. I plan to repurchase many of them after the 30 day period. What is the best time to sell for tax loss. Early November or late December? and the reasons for

Thank you
Steve

Q: Hi 5i team, thanks for answering my question so soon. However, what I want to know is : do I have to wait 30 days before buying back the stock even though there is a net gain. Thanks.

Q: Hi 5i team, I would like to clarify the 30 day rule on loss selling. Hypothetically, if I buy say 300 shares at $1 and sell 200 at $1.5 ( gain of $100)and at a much later date say 1 or 2 years sell 100 at $0.5 (loss of $50).Will the last sell at a loss counted as loss selling? Thanks.

Q: Presently the family investments are about 80% Cdn stocks and 20% US stocks....excluding defined benefit pensions.
I would like to increase the US stock portfolio to 30% US stocks, using primarily new cash.

What I'm mulling over, pondering is this - what factors should I consider about taking US stock positions in TFSAs?

One that I'm aware of is that there is no recovery of US taxes withheld on US stocks held in a TFSA.

On the other hand, it seems the overall appreciation of US stocks is better than Cdn stocks, especially in certain sectors.

As the investments in the TFSA are to be held for the long-term, I am inclined to do it....take US stocks positions in the TFSAs.

What say you about doing it?.

Much appreciate your thoughts..........Tom

Q: I have owned WFC for a very long time. A shareholder class action law suit finally resulted in a small payout. How is this treated? Is it income or does it reduce the cost of my shares? Thank you for your answer, Cheers

Q: With respect to Shyam questioning your answer regarding US Tech stocks seeing tax loss selling in January. I believe the portion of your original answer that he is referencing related to selling tech stocks in January to crystallize capital gains, not losses, as a result of the huge run in tech stocks this year. The reason people will hold off selling tech stocks till January, both in Canada and US, is that it is the start of a new tax year and they may not want to incur capital gains until the new tax year starts. A corresponding drop in Tech prices may occur if this sell off is large enough.

Q: Hello, In response to one of the questions you had mentioned that US tech stocks may see tax loss selling in January. Does the US have different time for taking advantage of tax loss as opposed to Canada? Could you eleborate on this a little further. My understanding was tax loss selling usually takes place in Novemeber/December. Thank you.

Regards,

Shyam

Q: I have a non-registered account(all dividend)that I hold twenty positions with 50/50 US/Canada split. With My TFSA/RRSP being maxed, what tax considerations to I need to be aware of?

Q: What ETF's are available to a Canadian RRSP investor that are not subject to a US withholding tax on the US market holdings within that ETF? The added cost of HXS makes it virtually equal to ZSP with the US tax withheld so anything other than HXS. Thanks.

Q: In recent questions, you have recommended VEE as a Canadian emerging markets ETF. In the past, you often recommended ZEM. Is this observation correct? If it is correct, why do you now prefer VEE to ZEM?

For a TFSA account, would you still prefer VEE to ZEM? If I am reading the company information correctly, ZEM appears to be more tax efficient and has had a higher return over the last 5 years.

Your advice is most appreciated. Thank you.