Investment Q&A

Q: Could you confirm that dividends of companies domiciled in Canada, regardless of the exchange they are listed on, and paid and received in US dollars still qualify for the Canadian dividend tax credit? As such, I assume that there would not be any US withholding tax (non-reg accounts). It would only be the US dividends from US corporations that would have 15% withheld?

Thank you.

Paul F.

Q: Is there a way to determine whether the dividends paid out by a company will be taxed as income or will receive the dividend tax credit, in an unregistered account? for example: enb.to, enf.to, bep/un.to, bip/un.to, bns.to, ala.to, bce.to, eci.to, etc. I am looking for solid companies with growing dividends where these dividends will be taxed more favourably as dividends and not income. Would you have a list of suitable companies? Thank you.

Q: Hi 5i,
My understanding is that if I buy units in a flow-through shares partnership, I can’t sell them until they are rolled over into a mutual fund, 1-2 years after the partnership is established. My question is: if I were to buy the flow-through shares themselves, direct from the issuing company, would there be any similar minimum holding period, during which the shares would not be tradeable, or at least not without transferring away the flow-through tax benefit? Thanks!

Q: I have stayed away from LP stocks due to worries about tax issues. Do you have any general comments on LP stocks? for example, If one holds BEP.UN on the TSX, should one purchase it in a registered or non registered account? Are there tax concerns....or is that only a problem if one purchases on the US stock exchange?

Thank you so much for your comments on this issue.

Q: I realize you are not big fans of covered call strategies however if an investor is in a situation whereby they want the income only and do not care allot about the underlying growth in the ETF, is there something really negative about these funds that I am missing? Would an investor end up paying more tax compared to a straight forward dividend ETF?

Q: As I am over 55 and live in BC I qualify to defer my property taxes until sale of our home. I will have to pay .7% interest on the deferred funds this year and the rate can change yearly. I was thinking of depositing the equivalent funds (about $2500 per year) my TFSA each year as i have unused room and I was wondering what recommendation you would make for a reasonably safe investment for these funds for the long term until sale of our home when they will come due along with interest.

Q: If I have ALA in my RRIF with a loss can I sell it and buy it back in my cash account without waiting 30 days.

Q: Hi Peter and Team,

Back in 2004 and 2005, I purchased 2 labour sponsored funds, to get the tax credit associated with them. One has gone under and the other is about half the value.

What is the minimum time I have to keep on holding to the labour sponsored fund, without being penalized for the tac credit?

Tganks

Q: I am an investor with no employment income. I have cash to deploy in both a Registered and Unregistered account. I am looking at KWH.UN, HOT.UN TD and BNS.
Should the REITs or the banks go into the registered or unregistered account?

Q: Just wanted to say that successor holder for TFSA can only be spouse otherwise has to be beneficiary. Beneficiary will get the money whereas successor holder can merge the TFSA market value into their own TFSA.

Thanks for all your work.

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Q: If I may add my two cents worth to the question from Valdis re RRSP or RFSA, another advantage for the TFSA is estate concerns. When a person passes on, should there be say, $100,000 in an RRSP or RRIF, that RRSP or RRIF will be added to the final net income and therefore, attract a huge bill from the tax man. On the other hand, the TFSA will be passed on to the heirs tax free. In this situation, an individual is better off to convert as much as possible from his/her RRSP/RRIF to the TFSA, depending on the current income tax situation (take every opportunity to do so). The TSFA is, of course, paid with tax paid dollars whereas the RRSP pre-tax dollars.

5i Research Answer:
Good point; thank you. It is best to name a successor holder to facilitate the tax free transfer. Otherwise, income generated post death may be taxable.

Q: If I may add my two cents worth to the question from Valdis re RRSP or RFSA, another advantage for the TFSA is estate concerns. When a person passes on, should there be say, $100,000 in an RRSP or RRIF, that RRSP or RRIF will be added to the final net income and therefore, attract a huge bill from the tax man. On the other hand, the TFSA will be passed on to the heirs tax free. In this situation, an individual is better off to convert as much as possible from his/her RRSP/RRIF to the TFSA, depending on the current income tax situation (take every opportunity to do so). The TSFA is, of course, paid with tax paid dollars whereas the RRSP pre-tax dollars.

Q: Hi: can you explain the advantages to holding some stocks in an RRSP while others should be in a Tfsa?

Thanks

Q: BROOKFIELD RENEWABLE PARTNERS L.P. is, I believe, the legal name for the Brookfield business with TSX symbol BEP.UN. Is BEP.UN a U.S. Master Limited Partnership (MLP)? An article in the May 27 Globe Report on Business discusses the risks to a Canadian investor holding U.S. MLPs, including a 39.6% withholding tax on payments to non-residents (according to the article, the tax applies to both registered & non-registered accounts). Is this applicable to BEP.UN.? Thanks for your reply. Edward.

Q: What account type would be best and second best for this reit? It has US distributions. RRSP, TFSA or non-registered?

Q: I was looking @ holding growth w/o dividend stocks in USD in my TFSA. Are there any disadvantages if you remain under foreign threshold for US taxes?

Q: Hello,
Is it possible to use a portion of my RRSP or LIRA to invest in an apartment building ? How complicated is it in terms of forms to fill and accounting. Would the net rental income remain tax free in a segregated account ? Thank you for your help and please fill free to include website with relevant information in your answer if you know any. Thank you.

Q: If a Canadian who has lived in the U.S. for the last 10 years moves back to Canada, and wants to start a TFSA, what would his contribution limit be.

Q: Just a clarification on TFSA. If I had run up my TFSA to 200K and this year I cashed out, next year I could put back in the 200K I had withdrawn plus the 2018 contribution , is that correct. thanks, Jean

Q: Hi.

Im borrowing funds for investing purposes.Since this is my first time doing this, I want to ask your advice if I use in non registered acct or my TFSA.I know I can get a tax credit for interest payment of the loan but with TFsa everything is tax free except theres no tax credit for my loan.Jist dont exactly known the calculafion.Im in 40% marginal tax bracket.

Appreciate your help. Thanks.

Q: Let's say I contributed $51K into my TFSA, and my portfolio grew to $100K. If I decided to liquidate my portfolio and withdraw all of the cash from my TFSA in December, how much can I contribute back to my TFSA in January? Would it be the new year's contribution limit plus the $100K that I took out?