Q: Held in non registered account is the 5% Dividend a clean Canadian dividend qualified for tax credit or another nightmare at tax time k-1 form , 1135 form …. ETC
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
-
Brookfield Infrastructure Partners LP Limited Partnership Units (BIP)
-
Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
Q: I have a loss on BIP but I like the fund. It would seem wise to sell the BIP and buy BIPC. Would this violate the capital gains loss?
Q: Hi Folks,
I'm looking to harvest a loss in this account which has a June 30 year end. I have substantial losses in both named companies. In your opinion is this a good plan? Should I re-purchase either or both in 30 days?
Thanks for your help.
Dennis
I'm looking to harvest a loss in this account which has a June 30 year end. I have substantial losses in both named companies. In your opinion is this a good plan? Should I re-purchase either or both in 30 days?
Thanks for your help.
Dennis
Q: Is the receipt of BIPC a stock dividend equal to $49.29 per share?
If all the BIPC shares are converted into BIP.UN is the only tax effect an addition to the Adjusted Cost Base equal to the above stock dividend?
If all the BIPC shares are converted into BIP.UN is the only tax effect an addition to the Adjusted Cost Base equal to the above stock dividend?
Q: Please clarify, ACB calculations.
# 1 One needs to consider all trades registered and non registered accounts, yes or no.
# 2 I sell in a non registered acct. at loss. I buy in less than 30 days in registered or non registered acct,
The loss is not allowed, yes or no.
# 3. However, in question # 2, the buy trade must be entered to get my new ACB regardless if it was done in a registered or non registered acct. yes or no.
# 4. The 30 day rule is calculated from the trade date and not the settlement date. Yes or no.
Thank you.
# 1 One needs to consider all trades registered and non registered accounts, yes or no.
# 2 I sell in a non registered acct. at loss. I buy in less than 30 days in registered or non registered acct,
The loss is not allowed, yes or no.
# 3. However, in question # 2, the buy trade must be entered to get my new ACB regardless if it was done in a registered or non registered acct. yes or no.
# 4. The 30 day rule is calculated from the trade date and not the settlement date. Yes or no.
Thank you.
Q: Hello,
I have a question about the potential need for a Canadian citizen to fie a USA tax return, stemming from their investment in certain assets. I hold both BPY.UN and EPD in various registered accounts (RRSP, LIRA & TFSA). Subsequent to filing my 2019 Canadian tax return, I am now receiving documentation from both Brookfield and Enterprise Product Partners L.P. that would appear to indicate there might be some desire on the part of the U.S. government that I file a Schedule K-1 form, related to income I received from these two entities, during 2019. My questions are:
As a Canadian citizen who holds these investments within my registered accounts, am I in any way compelled to file a Schedule K-1 and/or any associated USA Federal or State tax returns?
Whether compelled to file them or not, is there anything potentially to be gained on my part, if I were to file the U.S.A. federal and any state specific tax returns? (The recovery of any withholding taxes on the income I received in 2019, for instance)
Thank you!
I have a question about the potential need for a Canadian citizen to fie a USA tax return, stemming from their investment in certain assets. I hold both BPY.UN and EPD in various registered accounts (RRSP, LIRA & TFSA). Subsequent to filing my 2019 Canadian tax return, I am now receiving documentation from both Brookfield and Enterprise Product Partners L.P. that would appear to indicate there might be some desire on the part of the U.S. government that I file a Schedule K-1 form, related to income I received from these two entities, during 2019. My questions are:
As a Canadian citizen who holds these investments within my registered accounts, am I in any way compelled to file a Schedule K-1 and/or any associated USA Federal or State tax returns?
Whether compelled to file them or not, is there anything potentially to be gained on my part, if I were to file the U.S.A. federal and any state specific tax returns? (The recovery of any withholding taxes on the income I received in 2019, for instance)
Thank you!
Q: Peter; I’m debating taking some tax losses on ipl and key and riding out the 30 days in bip.un and sru.un. Please comment. Thanks. Rod
-
Brookfield Infrastructure Partners L.P. (BIP.UN)
-
Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
Q: Under what circumstance would you consider swapping one BIPC share for one BIP.UN, assuming the ongoing dividend and unit distribution payout are identical.
Would it be just the tax consequence on the future sale of the share or unit, and perhaps the tax treatment of the dividend and unit distribution payout? Thanks.
Would it be just the tax consequence on the future sale of the share or unit, and perhaps the tax treatment of the dividend and unit distribution payout? Thanks.
Q: Greetings Team 5i,
I was thinking of buying for RRSP but concerned about losing out to withholding tax.
XDG is a Canadian wrapper with around 53% of USA holdings plus rest of the world.
Would you have an idea of the withholding tax status? Held in an RRSP, would the USA holding's dividends NOT incur withholding but the remainder would?
In this case, I am giving the issue of withholding tax too much thought and should just buy it for its merits?
Thank you in advance!
I was thinking of buying for RRSP but concerned about losing out to withholding tax.
XDG is a Canadian wrapper with around 53% of USA holdings plus rest of the world.
Would you have an idea of the withholding tax status? Held in an RRSP, would the USA holding's dividends NOT incur withholding but the remainder would?
In this case, I am giving the issue of withholding tax too much thought and should just buy it for its merits?
Thank you in advance!
Q: In a margin account ,if you have a gain on a sell 50% is taxed on the gain and if you repurchase in less than 30days there is no discount when you sell.Does this also apply to rrif accounts.Thanks a lot for your very professional advise during these trying times.
Q: I asked a question about TOY the other day and you kindly answered. But, I have had a nagging doubt about the transaction that you may be able to clarify. The plan is to buy it in rif and in 30 days sell it in my margin account, where I hold it. It seems counter intuitive but I believe I may have read that it is not 30 days that I must keep it before selling but 60. Thirty days before and thirty days after. I can't really see clearly on this and wonder whether you could clarify
thanks
thanks
Q: Hi, I have a tax question.
For non dividend US payers, do we get charged capital gains in a TFSA
For non dividend US payers, do we get charged capital gains in a TFSA
Q: I had trouble explaining tax loss selling to my sister. If I sell a company for a tax loss and buy it back in 30 days and it goes up I have a capital gain that I will have to report sometime that I would have to use the capital loss to cover offset. Tax-wise wouldn't that be the same as not doing anything? That would also be the scenario if I bought a parallel company that went up in a similar manner to the one I sold.
I always hope to have a capital gain on something so the capital loss may come in handy but in this market I probably won't be using the capital loss anytime soon so the tax savings is a bit theoretical. As near as I can see the only way to come out ahead is if I sell a company that is down and buy a similar company that is also down but likely to recover more or faster than the one I sold. In other words, sell a lousy company and buy a quality company. But then should I be doing this all the time anyways. I'm not too sure that I can reduce my taxes in the long run. So I am just standing by in a holding mode hoping for better times because I liked the companies that I had before all this craziness although I don't like the losses. Only if I have or recently had a capital gain is the tax loss selling worthwhile Does that sound about right or am I missing something.
I always hope to have a capital gain on something so the capital loss may come in handy but in this market I probably won't be using the capital loss anytime soon so the tax savings is a bit theoretical. As near as I can see the only way to come out ahead is if I sell a company that is down and buy a similar company that is also down but likely to recover more or faster than the one I sold. In other words, sell a lousy company and buy a quality company. But then should I be doing this all the time anyways. I'm not too sure that I can reduce my taxes in the long run. So I am just standing by in a holding mode hoping for better times because I liked the companies that I had before all this craziness although I don't like the losses. Only if I have or recently had a capital gain is the tax loss selling worthwhile Does that sound about right or am I missing something.
Q: Hi there, I had 100 Detour gold which was taken over by KL at 0.4343 KL for every Detour. I received 43 Detour and now received $39.94 cash in lieu. I suspect this is payment for the fractional amount of KL shares I did not receive. How do I treat this $39.94 please? Is it a capital gain, dividend? Does it affect the ACB of either? Thank you.
-
Stryker Corporation (SYK)
-
Enbridge Inc. (ENB)
-
TFI International Inc. (TFII)
-
iShares U.S. Industrials ETF (IYJ)
-
Boyd Group Services Inc. (BYD)
Q: I have a large capital gain on Boyd for the 2020 tax year which I am considering offsetting by taking Capital losses which I have on the above mentioned stocks, including BYD. What is the best way to do this? Sell and wait 30 days to re-buy? Sell now and buy proxies (what would they be?)? I’m also considering using stop losses to take advantage of any increase in stock prices I might otherwise miss. Would appreciate you comments and advice. Michael
Q: Hi,
I hope everyone is well. I am doing some tax management. We have a sizeable loss in Great Canadian. I’d like to sell it for a capital loss. What similar company would you recommend to replace for the 30 period should there be a bounce in the sector or should just set sit on the cash for 30 days?
Thanks,
Kerri
I hope everyone is well. I am doing some tax management. We have a sizeable loss in Great Canadian. I’d like to sell it for a capital loss. What similar company would you recommend to replace for the 30 period should there be a bounce in the sector or should just set sit on the cash for 30 days?
Thanks,
Kerri
Q: I sold some securities today in my personal account at a loss to offset some CG's I had. I know I can't buy the shares back for 30 days in my personal account; but do you know if can I buy the same security in a Corporate account that I own?
-
Canadian Imperial Bank Of Commerce (CM)
-
Methanex Corporation (MX)
-
Fairfax India Holdings Corp (FFXDF)
Q: Please suggest replacements for the above stocks. I want to harvest some capital losses.
Q: Hi 5i,
Just a comment. Print if you like it. Regarding Tom's question (March 24) about ways to "lock in" an FX gain realized through holding US stocks in a US dollar account, but wanting to continue holding US stocks. Another way to do it might be to switch the cash to CAD (ideally through a Norbert's Gambit to avoid paying exchange fees) and then to use the Canadian cash to purchase a hedged S&P 500 index ETF like VSP or XSP. The FX gain would be harvested in moving to Canadian cash while the CAD is relatively low. The currency-hedged ETF would provide the percentage return of the underlying index while protecting against the longer term likelihood of the CAD swinging back to higher levels. Owning e.g. VSP would preserve investment exposure to US stocks. They would not be exactly the same stocks as were owned in the first place, so the shift from specific stock holdings to an index product would be one aspect to consider. Another would be the tax aspect, if the investments are in a taxable account. If, in his circumstances, exchange fees were unavoidable and there were a significant tax hit in the mix, that might count heavily against this approach. On the other hand, if the FX gain is in an RRSP and the account format and brokerage policies will allow Norbert's Gambit, it might be a decent way to go.
Cheers!
Just a comment. Print if you like it. Regarding Tom's question (March 24) about ways to "lock in" an FX gain realized through holding US stocks in a US dollar account, but wanting to continue holding US stocks. Another way to do it might be to switch the cash to CAD (ideally through a Norbert's Gambit to avoid paying exchange fees) and then to use the Canadian cash to purchase a hedged S&P 500 index ETF like VSP or XSP. The FX gain would be harvested in moving to Canadian cash while the CAD is relatively low. The currency-hedged ETF would provide the percentage return of the underlying index while protecting against the longer term likelihood of the CAD swinging back to higher levels. Owning e.g. VSP would preserve investment exposure to US stocks. They would not be exactly the same stocks as were owned in the first place, so the shift from specific stock holdings to an index product would be one aspect to consider. Another would be the tax aspect, if the investments are in a taxable account. If, in his circumstances, exchange fees were unavoidable and there were a significant tax hit in the mix, that might count heavily against this approach. On the other hand, if the FX gain is in an RRSP and the account format and brokerage policies will allow Norbert's Gambit, it might be a decent way to go.
Cheers!
Q: I have 2 non-reg accts (Accts X and Y). I have held ENB in Acct X for some time, and it is now in red. I bought more ENB last week in Acct Y. If I sell ENB in Acct X now to use the loss (ie, after purchase in Acct Y), can I assume that I can use the loss because I bought the "new" ENB before selling the old ENB. FWIW, I put the new ENB in diff acct just to keep the 2 separate.