Investment Q&A

Q: Hi 5i: Just a suggestion in relation to Elaine’s question about dealing with large embedded capital gains in a taxable account. If you are someone who makes charitable donations anyway, consider giving some of your highest percentage capital gains away by donating the shares instead of cash. For your own tax deduction purposes you get a tax receipt for the full value of the donated shares (capital gain included) but you don’t have to pay the tax on the gain to do it. An organization called CanadaHelps is worth checking out online as a facilitator. Before the New Year I was able to transfer a bunch of my PUR shares to them (after the takeout bid!), specify that I wanted the donation split in 12 different directions, and select the 12 different charities to receive individual donations equivalent to specific numbers of the shares. It was relatively easy for me given all the administrative work they looked after. And I got a bigger tax receipt than I would have if I had sold the shares, paid the tax, and donated the leftovers.

Q: Dividend payments from US stocks like T generate a withholding tax which is not insignificant. Is there a process for getting a refund of this tax under dual taxation with the US?

Q: I understand you can't sell a stock for a Capital Loss and buy it again within 30 Days in any sort of account whether it be Cash, RSP, TFSA.
Can you do the opposite and Buy new shares in RSP first to take position then sell the same companies shares in Cash Account for Capital Loss?

Q: Is there any disadvantage or consequences with having many US investments in my TFSA or RIF.?
Margita

Q: I sold GUD for tax loss purposes. Trade date was Dec.18, settle date was Dec.20
What date can I repurchase it?

Q: Can Americans sell up until the end of the year for tax purposes without having to worry about settlement date falling into the same year. Thanks

Q: First of all Merry Christmas and Happy New Year to the 5i team and all my fellow subscribers.

My question relates to where should I invest (RRSP vs TFSA vs Non Registered).

I am 53 yrs old and plan to retire in the next 12 yrs. My current investment portfolio is virtually 100% in RRSPs. My goal is to build a strong dividend portfolio of Canadian stocks coupled with an International and Bond ETF. My question is where should I keep my investments? RRSP? TFSA? or Non Registered?

I am entering my peak earning years and feel that I can retire comfortably on approx. 70% of my current income. I see potential benefits in all 3 but not sure where I should keep my investments. I will likely be at a lower tax rate than I am now than when I am ready to withdrawal from my RRSP. However, who knows what will happen with tax rates. As well, income from my RRSP (but not my TFSA) would impact my OAS clawback.

Any suggestions would be greatly appreciated.

Q: Have done some tax loss selling and could do some more. Have losses in both CRH and WPK. Don't need the $ however could deploy elsewhere if freed up, and use loss to offset some 2017 gains. Any indicators to say which one may stage a decent recovery sooner than the other?

Q: I trade with CIBC and recently they reduced their settlement days from 3 to 2. In this case what would be this year's final stock sell day to qualify for tax loss selling? I assume it would mean December 28 for 2017. Am I right?

Thanks.

Q: If I sold shares on Nov 22 (settlement date Nov 24) and realized a capital loss can I buy the shares back on Dec 21 as the settlement date is after Dec 24th?

Q: Currently, I am down over 50% on PEY. I don't really want to sell at the bottom but am concerned about the sustainability of the dividend. I don't necessarily need the dividend, so would it be a good move right now to replace PEY with BIR?

Q: I was wondering if the recent run up in scr was due to tax loss selling and if so should I sell the increase and buy back in January.

Q: TFSAs and RRSPs. Are you able to sell a stock one day, and rebuy the next, or is there a waiting period as in non-registered accounts.

Q: Good Morning Peter, Ryan, and Team,
Tax loss selling season is coming to a close for 2017.
In your opinion which company(s), within the Balanced Equity Portfolio, appear to be sold down unnecessarily as a result of tax loss selling ???
To me GUD, WCP, CLS, and GC appear to be candidates. A company outside of the BE Portfolio that has really been thrashed is PEY although the gas market in Canada is brutal right now.
Thank you very much for your sage insights. DL

Q: I want to boost my income in my RRSP from MLP's would it be better to use an ETF such as AMZA or CEF such as FMO or KYN for 5 year hold or longer. Is theer any holding tax on any of the three?
Thank You
Cec.

Q: How are the dividends from VE and VEE treated from a tax perspective in a cash account, TFSA and a RRSP account.
Many thanks.

Q: I am an Alberta resident and in a low (15% federal rate) tax bracket and have the option of placing my $US investments in my TFSA or a regular investment account. Recognizing the 15% US withholding tax but also the foreign tax credit against Cdn tax owed, which account is preferable from a current income perspective?

Q: Just a comment on Earle’s post on Friday on the 30 day waiting period on capital losses and being able at least to adjust your cost base. I am an “active” investor, which is a polite way of saying I trade a lot. I am not recommending that for all but here is my approach to taxes. I really don’t pay much attention to the 30 day rule during the year. If I sell a loser and change my view in a week or so due to new information, I will buy it back right away so as not to lose potential upside on that stock. At year end, I get my detailed trading statement. When I am calculating my capital gains/losses for the year, I check each losing security to see if I bought it back within the 30 day window. If I did, I just don’t claim the loss. For me, missing a taxable capital loss feels a lot better than missing the opportunity to get back onboard a stock on day 10 or 15 if my view has changed rather than waiting for day 30 to pass. I agree with Earl that taxation should always be secondary in your investment decisions.
I assume my approach is fine with CRA as I do not try and claim my capital losses if they are not past the 30 day window. Your views are appreciated.
Thanks again,
dave

Q: Good day. Any particularly interesting stocks that have been getting hit hard through what would appear to be tax loss selling? Thanks!

Q: With regard to several questions asked about tax loss selling and the 30 day rule. The usual advice is that you will lose the capital loss if you rebuy the stock within 30 days after the sale. This is not accurate. While you cannot use or claim the capital loss, if you repurchase within the 30 day period the capital loss is added to your adjusted cost base and can be claimed when you eventually sell the stock the 2nd time. The bottom line is you are best making your decisions for investment purposes and not solely for tax reasons. I hope this helps those who are anxiously waiting for their 30 day period to end while watching the stock go up. Best of the season to everyone.