Investment Q&A

Q: There was a restructuring of Loblaws/G Weston back a while ago - can you please explain the changes. I held L and received WN shares. Can you please also direct me to the details for calculating ACB related to this. On a related note, what are the prospects for WN in the current environment - should I top up my WN or sell and buy more L?
Thank you.

Q: I sold some VBAL:CA at a loss to realize some tax losses and would like to repurchase this ETF at a lower entry point. Can I purchase a comparable ETF from another company like XBAL prior to 30 days, or would that be considered a superficial loss for tax purposes? Similarly, would purchasing a different asset mix product from the same company e.g. VGRO:CA or VCNS:CA be considered a superficial loss?

Q: Hi 5i Team. Question(s) for you on the ETF HPR as it relates to taxation. This summary was taken from my recently received T3. On the T3 summary in the first column it indicates, on a monthly basis a total distribution of $352.14. The $352.24 is broken down as follows: 2nd column on the T3, indicates a return of capital or foreign tax paid of $18.81. The 3rd column on the T3 then states the actual non-elig.div or actual elig.div or foreign tax paid of $344.63. Should I assume that the $344.63 is actual elig. div for the Canadian Dividend Tax credit? Please deduct number credits as required. Thx Steve.

Q: Further to my question of April 9 regarding withholding tax: I forgot to inquire of the following co's. if they also charge
NVS, PXSP, V and SDIV.
Thanks

Q: If I buy a stock at $10.00/share and it goes down to $5.00/share, I then sell the stock for tax loss of $5.00/share. I wait the 30 days and buy the stock again, but now the stock has gone back up to $10.00/share. Can you tell me what the benefit is? How much do I gain or lose in this scenario?

Q: Similar to the question that the gentleman Guy asked from April 8th, is it the same for an RRSP to transfer in kind to a TFSA? Is it allowed?

Q: Not a Question, just some feedback on the strategy of tax loss selling.
I crystallized some losses 24 Mar to the tune of 33k (gasp)!
Due to these wild markets, those four stocks are now collectively up almost 10k at todays close (another gasp…did I blink?)!
However, the ETF that I purchased 24 Mar with the proceeds from the sale of those stocks, and will hold for (at least) 30 days, is also up more than 5k. Even though things have moved more quickly than we would have thought possible, I am happy with the way things have turned out so far:
After 30 days, I will have a tax loss of 33k that can be carried forward indefinitely which brings a good deal of flexibility to my planning (how many of us have resisted selling a stock in the past because we don't want to pay the capital gains tax?). I will also hold a credible ETF that pays a monthly dividend that I may chose to sell and repurchase the original stocks, or not.
Before repurchasing, I will probably ask 5i if it is a good time to get back into those four companies.
Thanks again for all of your good work
Publish if you wish

Q: I am being charged with holding tax by my brokerage on foreign dividends in my US$ RRIF. [TOT] [Is that recoverable?

Q: I have a position in BIP.UN in my Cash account at a loss and a small position on BIPC in the same account. If I sell BIP.UN and buy BIPC would the loss be considered a superficial loss for tax purposes?

Q: Read today in G & M that I could transfer my RRIF in kind to TFSA. My wife and I would not need the funds from the dividends we receive. We are under water in value but have not sold any stocks. Our amounts would be below TFSA amount overall 69,500. for each of us.Would there be tax implications.Would banks charge to do this. Could we top up to$69,500 this year if we have cash becoming available. Tks 5i take as many questions points away as required for this answer.

Q: I am a Canadian citizen/resident. I use my non-registered investment accounts to hold dividend-paying Canadian companies as well as U.S. companies that pay no/small dividends. I use RSPs for U.S. companies that pay larger dividends. I use TFSAs to hold securities such as Canadian REITs and companies with unusual dividends such as BEP.UN and BIP.UN. My understanding is that BIPC is essentially “equivalent” to BIP.UN, but that BIPC will pay fully eligible dividends for which T5s will be issued (not sure if the BIPC distribution will be paid in CA$ or US$). Here are my questions: (a) given the above considerations, would it make sense for me to sell BIP.UN/BIPC within my TFSA, using the cash to acquire more of Canadian REITS and/or similar types of securities (with unusual dividends), and to reacquire the same value (of BIP.UN/BIPC shares sold) through purchase of shares of BIPC in a non-registered account? And (b) do you know whether it is known yet in which currency the future BIPC distributions will be paid?

Ted

Q: Hi,
I received shares of BIPC as a spinoff from BIP.UN. Can you five some information about the new company? How similar or different are they from each other? I am holding it in RRSP. Should I sell one and acquired the other for equivalent $ amount.
Thanks

Q: Hi, Our ACB for LSPD in non Regd account is $32. We have large Capital gains due to BYD conversion. Does it make sense to book capital loss by selling LSPD today and buying back after 30 days. Based on present market conditions and news around COVID-19, do you think it makes sense or there is risk of stock going back higher in 30 days time. Or, i
nstead, doing same exercise with BYD is a better approach. Thanks

Q: From my previous question on owing BIPC in a TFSA you state that it's better to own BIPC in a non registered account because of the dividend tax credit (that I understand)...but is that dividend tax credit really applicable or needed for a TFSA? I currently hold BIP.UN in my TFSA and I'm still trying to find the reason for switching to BIPC. Would it be withholding taxes?

Q: I have owned a large position of BIP.UN and done well, I have some in my TFSA account and some in my RRSP account. For future will BIP.UN and BIPC trade similar in price range and I do not see what dividend BIPC pays. Is BIPC dividend same as BIP.UN. Should I sell all my BIP.UN and buy BIPC. Can you explain tax credit implications.
Thank You
Al - Mississauga

Q: Re the couple who live on their RRIF and wished to "harvest capital losses", I hope they understand that you cannot harvest capital losses in a RRIF. Not sure if they were asking about their RRIF only or other accounts.

Q: Is there a "superficial gains" rule? I am asking as I am trying to determine the most effective ways to make use of capital losses. Would "washing" some existing gains in a tax year by selling and then immediately rebuying the up security be an effective way to use capital losses?

Q: The questions on this security seem to never end but why is it better to own BIPC in a TFSA than BIP.UN?

Q: Dear 5i
A couple weeks ago i sold an ETF for a loss . A few days ago i inadvertently bought the same ETF back though not the same dollar value . In this situation have i lost the tax loss claim for accounting purposes and if so is there any way of getting it back ie re selling again the same ETF i just purchased a few days ago ?
Also i`ve opened up 3 RIF accounts ( mine, my wifes and her spousal ) .
I plan on transferring our RRSP monies from each of our RRSP accounts into the corresponding RIF accounts but only for what we need to live on for that year (for tax reasons ). This amounts to about $16k per account .
My question is how should the $16k per RIF account be invested considering that about $4k will come out from each account every 3 months (staggered withdrawals ) ? The bulk of the investments will still be in RRSP`s and it is these accounts that can be fully invested ( when the time comes re the virus ) .
Thanks
Bill C.

Q: Are currency exchanges using a DLR/DLR.U transaction to be reported on one's income tax return? The transaction will usually result in a small loss when the commission is factored in. (It would seem odd to be able to claim this loss, when you can't write off the fee for exchanging dollars at the bank!)