Investment Q&A

Q: With respect to the differences between the year end value of BYD.UN and what some brokerage firms have used, I received word from TD that they will be using the price of the shares of BYD when they received the shares not the date when the transaction occurred. TD received the shares on January 8, 2020 and they used the closing price of BYD on January 7, 2020, which was $215.77 vs. the closing price of BYD.UN of $202.00 on December 31, 2019.

Q: Let's suppose Ottawa increases the capital gains inclusion rate, say jan2,2021.
Would that increased rate apply to capital gains prior to Jan 2,2021 or to capital gains from jan2,2021 ?

Q: Hi- what taxes (both American and Canadian) do you encounter for US equities regarding capital gains in a TFSA and Canadian non-registered account?

Q: I have owned Boyd for the past year in a non registered account and have realized capital gains due to the conversion this month. I also own GIL in the same account. Just wondering for tax loss selling if I should sell GIL now to offset the Boyd gain a bit. I intend to buy back GIL after the 30 days. Do you think I should wait a bit or is now a good time to do this?

Q: I bought TCL.A for my TFSA. For arguments sake I bought $8000 worth and now, 1 year later, it is worth $4000. If I bought a further $8000 of TCL.A outside of a TFSA today. For whatever reason I have to sell these shares tomorrow and realize a flat trade. Would I be able to claim a $2000 loss?

Q: My 82 year old mother in law has $300,000 in a RRIF and $800,000 in non registered accounts. There are 3 children who are equal equal beneficiaries in her will. From a tax perspective would she be better off withdrawing more than the required minimum from the RRIF before she dies or withdrawing more from the non registered accounts? Which scheme would result in less tax paid by her heirs ? The non registered accounts are 80% GICs and 20% equity funds. Thanks, Joe

Q: I have recently decided to invest in us securities and am concerned about us withholding tax and how it is applied to canadian investors as I saw a comment re the treatment in tfsa accounts .What tax implications apply to me as a Canadian investor when buying us stocks?
cheers, Doug

Q: Please explain tax implications if held in cash and RRSP accounts.
Thank you

Q: For those concerned about the proceeds from the DRG.UN disposition, I can advise that TD Direct Investing changed the portion designated as dividends to ROC on Jan. 3rd.

Q: What are the dividend tax credit consequences when I hold inter-listed Canadian stocks paying dividends in USD in an US rather than a Canadian margin account?
Thank you.
Werner

Q: I was on holidays at Christmas so I put a stop loss on a few stocks. Trade Desk which was trading at a low of $256.00 for quite some time for a split second dropped $10 to $246.00 and took out my stock and was right back up at $256.00 again. Would the market maker have dropped that so some lucky guy could get the stock cheap?
A broker I know told me that since I average at the most 30 trades a quarter, Revenue Canada could classify me as not an investor by making so many trades which could cause me to not qualify for the 50% capital gains rule and I would have to pay tax on 100% gains. I put it on forums but I haven't had a response yet. Hopefully you can enlighten me on this.
Nice call on Park Lawn. I get a lot of emails pertaining to the market and one advised me the other day to buy Park Lawn as it was going to break out above $30.00. I already own Park Lawn so nice call from 5i that I got it a lot cheaper some time ago.
Thanks for making my trading easier. Dennis

Q: I am a rookie and do not want trouble with the 'taxman'. Ha!Ha! If I have a loss in my Canadian Cash Account can I apply it to a capital gain in my USA Cash Account? I believe I cannot receive a tax loss in my Tax Free Savings Account. Is that true? Finally my RIF Account...I believe it is a separate entity...I cannot claim losses with other accounts OR within the account itself...I just pay income tax when money is withdrawn. Am I in error here?
Thanks for the clarification!

Q: When is the first day i can sell a stock for a capital gain that will register in 2020 for tax purposes.

Q: What are the tax implications for the spinoff of OTIS and Carrier for Canadians?
i.e. Will they be taxable as income or will the spin-off be eligible under section 86.1 such that the ACB is allocated between the original shares and the spin-offs.

Thanks

Q: Hi 5i,
I have a large capital gain in a Non Registered account that I plan to offset by 'partially' selling one of my holding in a losing energy stock. For tax purposes, if I partially sell my holdings in this energy stock prior to Dec 27th will I be allowed this loss or must I sell all of the shares I own in this company?

Q: There is no 30 Day time limit if you sell at a capital gain in the unregistered account and buy it right away in a tfsa? If you did have a capital loss. Does it make a difference if you bought first in the tfsa and then after sell your shares for a loss in the unregistered account?

Q: The beginning of January I plan to put $6000 in my wife’s TFSA and $ 6000 in my TFSA. The contribution will come from our joint savings account. I plan to buy for each of us 300 shs of VET. In the meantime I will be selling 600 shs of VET in my non registered account. Following this I will put the proceeds from the sale into our savings account. Is this any different from directly contributing the shares in our TFSA ?
My interpretation of this is that it would be a deemed disposition, and I won’t be able to claim a capital loss, but I would be able to claim a capital loss in the first instance above.
I know this is an accounting question, but if you prefer not to answer , maybe one of your subscribers is knowable enough to give an answer.

Q: If one has a capital gain for 2019. To reduce taxes to be paid on this capital gain, if I sell a portion of StockA with a capital loss to negate any capital gain taxes to be paid. Would I be able buy back this portion of Stock A after 30 days without triggering superficial loss rule? Or do I need to sell the full position of StockA to avoid superficial loss rule? Thank you.

Q: Hello 5i team,.
I have MX and TFII in my margin account that I'm thinking of selling to claim the capital loss.
Do you expect these two stock prices to go up significantly in the next 30 days?
Would you advise to buy them back after the 30 days?
Thanks

Q: It appears that this ETF has changed recently as required by the Liberals. Is this a taxable conversion or is there an option to treat this otherwise?