Investment Q&A

Q: I hold CDRs for us companies within RRSP and TSFA and ACB is over $100000 do I have to fill in T1135 every year?

Q: My teenage daughters have some extra cash from grandparents and odd jobs. I currently maximized their RESPs but would like to see them invest the money in some stocks to have them learn first hand about investing. I realize you aren’t tax experts but wondering if you could point me to how best to do this. I understand I have to be account holder so for them to get the stocks I would have to sell them when they’re 18 and I pay capital gains or is there a way to transfer it to them and they pay capital gains tax? Any help on this would be appreciated.

Q: I have 3 questions in relation to my plans for realizing a capital loss re: a Starbucks (SBUX) holding within a corporate account. So far in 2024, I have realized net capital gains of ~$260,000 (100%) within this corporate account (I did this so as to capture the 50% inclusion rate effective before June 25, 2024). However, I now wish to partially offset this realized gain by realizing a capital loss for this position in Starbucks, currently at ~$90,000 (100%) unrealized capital loss.
(A) Would the 66.67% inclusion rate apply for this SBUX loss, if realized, even if all the previously realized capital gains during 2024 are applied at the 50% inclusion rate? (I realize you are not accountants, but I do know that you are generally aware of basic accounting principles related to commonly encountered investment scenarios.) It is my understanding that the 66.67% inclusion rate would apply, for this loss after June 25, but I am hoping you can corroborate this.
(B) My plan is to reacquire the Starbucks shares, after 30 days; however, I am not sure whether to just hold the SBUX sale proceeds in cash, for the minimum >30 day period, or whether to switch temporarily into a similar type of investment—what would you consider to be a reasonable “proxy” for SBUX? (note—I already own a similarly-sized position in QSR as my current SBUX position). Or given the possible slowing of consumer spending, and frequent summer stock trading doldrums, would you rather just hold cash for the >30-day waiting period?
(C) Finally, I am always nervous when the >30-day waiting period overlaps with a company earnings announcement (potential for greater price volatility). It appears that the next likely earnings announcement date for SBUX is expected to be around August 6, 2024. In other words, I could either realize the SBUX loss in the next few days (e.g., settlement on July 3 or July 5), or else wait until after the early August earnings announcement. I am curious how you would think about and approach this issue?

Ted

Q: Do CDRs of US companies need be reported on T1135 if ACB is over $100K?

Thanks in advance.

Q: Morning 5i Team,

I have s simple question regrading tax treatment of interest expenses.

Let's say I borrow money to purchase dividend paying stocks. How should I handle the interest so paid on such a loan? Do I simply write it off in the year the expenses are incurred or do I add the cumulated interest charges to the adjusted cost base of the stock when I sell.

Your help is much appreciated.
H

Q: What, if any, are the tax and dividend implications of having CDRs in a registered and a non- registered account?

Q: Adding on to Julie’s currency questions and your response. I’ve come to understand when contributing US funds into a US TFSA the CRA requires it be recorded in CAD, which I understand means you need to take US funds and buy a US money market, place it in your CAD TSFA and then transfer to your US TSFA and finally sell. I was told not doing so will incur additional currency exchange costs.

Do I have that correct?

Thanks all.

Q: Good day team, I’m looking to purchase both XLB and HDIV. Which accounts would be best suited for these ETFs?

Q: I recently sold my shares of bce that are in my non registered account at a loss with the intention of buying the shares back 30 days later. However I also recently purchased bce shares in my registered accounts. Can I still repurchase the bce shares in my trading account and claim a tax loss in the process. Thanks steve

Q: if I where to sell today stock from my corporate account would it be deemed for taxes sold today or settlement day the 25th?

Thanks !

Q: if you sell a stock with a nice capital gain by mistake and correct your error by buying it back a few minutes latter with the intention to keep it long term ,is the capital gain taxable ?
My guess is yes
So why not sell all my gainers before the 25 th and buy them back few minutes latter ????
your insight please

Q: I am looking for a short term safe investment for Canadian and US cash in a non-registered account. CBIL according Global X website holds 0-3 month Canadian government bonds, but when purchasing on Questrade, 0-3 mo U.S. T-bill pops up - is CBIL US or Canadian bonds? With UBIL.U in a non-registered account will there be US withholding tax on the estimated 5.25% yield? Thanks!

Q: Is it known if the purchase of CWB by National Bank for a all share transaction will be a tax-free rollover?

Q: Hi, Can you claim a loss if stock goes to zero, that is; if a stock get delisted can you claim capital losses ?
thanks

Q: Good morning,

BEP,UN is classified as energy in portfolio analytics, should it not be under utilities?

Thanks for the unique service you provide followed your suggestion on NVDA after 2 splits my cost base is 3.80$ only problem is the taxman with clawback at 91 000 already reached and at 107 000 combined rates plus clawback in quebec is 65 % ????
I put all the money, work, risks for one third of profit!!
I see no way around this do you have any suggestion or resources to address this.
I won't ventilate to much as my language would not be proper.
Thank you !

Q: Which Canadian companies will be most impacted by the new capital gains tax. Appreciate your insight.

Q: I am considering buying HXS but noticed the mer is .11% and the ter is .30% for a total of .41%. This seems huge, especially given other S&P 500 etf's like VFV have a ter of 0. Why is this?

Q: Sold both for tax loss.
Wondering about proxies for both. Could you suggest a couple? If the proxy goes up in the 30 days, I presume you would keep the proxy until it changed direction. What is the thinking on this process. What if it goes down?
Thanks on your thoughts
John

Q: How is the $1.84US payment to ERF shareholders as part of the transaction treated with respect to taxes? Is this treated as a dividend? Do I calculate the cost base using the CHRD value on transaction day?

Q: As the acquisition of Enerplus by Chord is now complete, has it been communicated what the tax ramifications are for Canadian holders of ERF? Is it considered a deemed disposition of ERF shares at the value of the Chord shares plus cash received?