Investment Q&A

Q: Rumour is when government bring the budget,capital gain increases to 75 percent(at present is on 50 percent).Any advise appreciated.Thanks.Ebrahim

Q: How can I find out if fap and cup.u are requried to be
reported in 1135 form for cra?
thanks

Q: If one has stocks/investments in a personal unregistered margin account, can they move it to business account for better tax treatment of capital gains and dividends. Will this work in practice?

Q: I am cleaning up my portfolio and have to deal with a $35k loss on Terra Energy (TTRHF) .. what is the best way to do this? I was sent a form to sign by my online broker (Letter of Authorization - Direction to Remove and Assign Securities (Delisted)) .. is this a good idea? And what about the case of a stock that is still listed (e.g. Knighthawk - KHA) at 2 cents?
Your advice is much appreciated in dealing with these matters.

Q: Hi 5I, I now have 180000 in my TFSA mainly from investing in EIF. I have since diversified and feel like I need to make more trades. I heard CRA can tax you if they figure one is treating this as a job? Your thoughts please.

Regards

Q: RRSP question: Assume I am an Alberta resident with $0 income in 2017. How much can I withdraw from from my RRSP account while maintaining a 0% tax rate (disregard withholding tax)? 2017 Basic Alberta Personal Amount is $18,690 at 10% and Federal amount is $11,635 at 15%. And, can I make this withdrawal now (Feb. 17) for 2017 or does the March 1st RRSP cutoff date apply for withdrawals as well? Thanks.

Q: Peter; If the Liberals raise the capital gains tax rate to 75 % what would you expect the market reaction to be and would it weaken the CAD? Thanks. Rod

Q: Hi:

If I make a charitable donation, for example 200 shares in kind, of a stock with a capital gain of 300% there would be no tax payable. If I purchase the same stock within 30 days, what, if any, are the tax ramifications?

Ron Vandendriessche

Q: This is a tax question. How do I report Canadian Oil Sands takeover by Suncor. I ended up selling the Suncor shares in 2016 as well. Do I have to report it as 2 seperate transactions or can I report it as 1. ie. What I paid for COS and then what I sold SU at. Thanks

Q: Regarding Bill's RRSP transfer to Questrade from a brokerage, the main issue of selling the investments to reinvest the funds is the tax implication. The sold RRSPs would be taxed, likely at 25%, and depending upon his RRSP contribution limit, he might not be able to reinvest the net sum. The RRSP amount would be included in his taxable income for the year of withdrawal and if large enough would "bump" him into a higher tax bracket. He would pay tax on the withdrawal at his marginal rate.

As you suggested, the transfer in kind is the only way to make this transfer without incurring any tax.

Q: Will putting this ETF in my TFSA trigger a US withholding tax? My feeling is that this tax only applies to dividends and seeing that his ETF is a small cap one, would the dividends be negligible? Tnx

Q: I hold the BMO S&P 500 Index ETF(ZSP-U, listed in US dollars) in my RRSP. I purchased this fund and had assumed it would be exempt from US withholding taxes but I’ve noted that it is listed on the TSX. Is it exempt the same way that an ETF like VTI would be?

Q: Hello 5i team. My question is in regards to taxation. I have an investment account at a CDN discount brokerage in US dollars. If I was to buy a cdn company say TD bank that trades on the US market and buy it in US dollars how would the dividends be treated? Would the dividends be paid in US dollars or paid in CDN dollars then converted back to US dollars? If they are paid in US dollars then are they subject to the 10-15% US withholding tax? I am trying to find investments that I can buy with US dollars but not be subject to the US withholding tax. Thanks

Q: Hi5i,
Can you explain how this dividend is paid out as far as tax purposes and what is their payout ratio. Would it be suitable to hold in a rsp account.
Thanks Dave

Q: Hi,

I've got equity in my cash account that I'd like to sell and buy again in my TFSA. Is there a a period of time I have to wait between when I sell and then buy again?

Thx,

Cam.

Q: Re form 1135 is zqq in my non registered account to be counted when reporting ? James

Q: I am not quite clear on tax implications for the following scenario. Could you please confirm (or not !) if I am correct or if there are other implications ?

If, in a Non-Registered Account, I hold a Canadian-domiciled ETF or Mutual Fund that owns a mix of Canadian, U.S. and possibly other international companies, then:

1) 15% of the U.S. company dividends will be withheld by the U.S. (Or whatever equivalent withholding tax if non-U.S.but international) This amount is reported at year end through the Fund/ETF, and reflected on the tax slip I receive from my brokerage. When I fill out my return, I can then apply for a foreign tax credit which means I should get back all the tax that was withheld.
2) The portion of dividends from the Canadian companies held by the Fund/ETF will be eligible for the Dividend Tax Credit but NOT the portion from the U.S. or international companies.

Thank you for your help !

Q: I would like to point out that when transferring an investment from a non-registered account to one's TFSA as a payment in kind, the unrealized capital gain is recognized at the time of transfer but unfortunately the unrealized loss is not recognized and is not allowed to be applied against any gains nor available for carry forward.

Q: The answer to a t1135 question by Sylvia 2 days ago wasn't correct:

T1135 - This form has nothing to do with the USA or USA estate taxes. It is a form required by the Canadian government. The purpose of the form is to make taxpayers more forthcoming about assets they have outside Canada. The problem is that the people that file the forms are the same ones that would report their foreign income anyways and the ones that have hidden foreign assets will just ignore the T1135 requirement. The penalty for not filing / late-filing is $25/day to a maximum of $2,500. Registered assets don't have to be reported on the T1135.

Q: I have about 110,000 dollar that I will be investing in your balanced portfolio and the etf ViG. About 45,000 dollars will be in a non registered account and 65,000 in TFSA. I am avoiding RRSP because I have a good pension. My tax person said that I would save tax by putting the non dividend equities to the non=registered account. I plan to leave the investments in for 7-8 year As well will vig be taxed at a higher rate because it is non-Canadian if it is in the non-registered?