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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: A follow-up to the discussion on the ACB of stocks held in multiple accounts: the real complication, here, is if some of your funds are managed professionally. It's by no means unusual that, acting independently and at arm's-length, both you and the money manager have taken positions in the same security. However, your money manager's end-of-year documents will pretend that only they own shares. Conversely, for you to integrate their cost-of-shares into your own end-of-year documents has the potential to get obscenely complicated, and (since the money manager doesn't reciprocate) pointless, to boot. I've never heard of the CRA complaining about reporting ACB separately for separately-managed accounts. After all, it would only create make pointless (i.e., unremunerative) work for them, too.
Read Answer Asked by John on October 21, 2015
Q: Hello 5i,
Regarding your response to Kenneth today: Not quite like that. The adjusted cost base is the AVERAGE cost of ALL the shares owned, in all non registered accounts.

Does this include tfsa accounts and corporate accounts?
I would think corporate accounts would be separate and as there are no capital gains or losses in tfsa accounts I would think they are separate as well?
Read Answer Asked by Randy on October 21, 2015
Q: If I move a stock (in kind) from my unregistered account into my TFSA when I am underwater on that stock can I claim a tax lose for the "disposition" of the stock or how do I treat it at tax time. Thank you.
Read Answer Asked by Edward on October 21, 2015
Q: Hello,
Starting out here and great to see all this information. One question that I could not find in the archives was regarding software. I would like to follow one of your model portfolios and is there an online program that would be best for managing the allocation and reinvesting dividends, especially since my portfolio is currently small (50-75K)? Ideally, this program would also derive holding percentages from my multiple accounts. I am currently using bmoinvestorline.com for TFSA and RRSP accounts in Canada; vanguard.com for a ROTH IRA account in the US. Also, about your question-answer service, do you provide responses to questions I might have pertaining to cross-border investment taxing/strategy?
Read Answer Asked by Henry on October 20, 2015
Q: Hello 5i team,
If you can answer this, if I have a stock in two different accounts that are down, if I sell all the shares in one account but none in the other account and do not purchase any more for thirty days, can I claim a tax loss on the sold shares, or would I have to sell all the shares in both accounts?
Thanks
Ken
Read Answer Asked by kenneth on October 20, 2015
Q: Re your answer to j.j.p oct. 18 question-tax loss :It does not matter which account you repurchase the holding in, if it is within the 30 day period, it cancels any tax loss claim.
I have coporation and personal accounts.Is your answer will be same?
Thanks for your great service
Read Answer Asked by manochehr on October 19, 2015
Q: Just to clarify the tax treatment re: BPY.UN distributions. I have held the TSX listed BPY.UN, BEP.UN and BIP.UN for a long time in a taxable account and there are no US withholding taxes withheld on the distributions. The distribution is taxed differently than a straight dividend (via the T5013) however. If you held the US listed stocks I think there would be a US withholding tax. Hope this helps.


Read Answer Asked by Gary on October 13, 2015
Q: I have held Brookfield Property in my RRSP since 2013 and have never seen a withholding tax: the Sept.30 distribution was a full 34.9 cents C$ per unit though you may elect to receive this in US$. Since the company is Bermuda domiciled, like BIP, it probably escapes US tax, but if owned in a cash account I'm sure it would attract a T5013 to complicate your life and probably some withholding tax from some tax entity.
Read Answer Asked by Jeff on October 13, 2015
Q: I am contemplating buying some common and preferred shares in utility type companies for dividend income. I understand the Liberals if elected may possibly make changes to taxation of capital gains. Have you heard or have thoughts whether they may also target the favourable tax treatment of dividend income as well?
Read Answer Asked by Gary on October 13, 2015
Q: We are both retired but still eligible to contribute 5000$ to a Quebec sponsored workers fund (FTQ) this year and get a refund on our income tax bill at the end of the year.
The funds have to be held 3 years.
Shall we contribute more or just transfer this holding to our Disnat account?
Thanks,
Serge Lacroix
Read Answer Asked by Serge on October 13, 2015
Q: In response to Richard's earlier question around BPY and dividends, MLP's such as BPY are, from a tax perspective, better off held in a non registered taxable account. This is because MLP have a 35% withholding tax and is even applied if held inside an RRSP. So better to hold in taxable account and get a portion of the withholding tax back through foreign tax credit. There was a Globe and Mail column on the subject a couple years ago if you can find it.
Cheers, from one Richard to another!!
Read Answer Asked by Richard on October 12, 2015
Q: Can BIP.UN as listed on the TSX be held in a TFSA without any tax implications ? Joe
Read Answer Asked by Joseph on October 07, 2015
Q: My comments about BPE are: In 2014 we used Turbo Tax (TT) to submit our taxes. TT increased my return twice in price until reaching their "Business Rate" because I had one form T5013 for BPE. My wife's return went through with no problem but when I submitted my return there was a statement issued "We're sorry the Canada Revenue Agency was unable to accept your NETFILE return".After trying to correct and send with no success I contacted CRA who directed me to a Tax Advisor. She tried and was unable to resolve and re-directed me to another Sr. Tax Advisor who also tried to resolve my/their problem with no success. He advised I contact TT.
After a long wait I did chat with someone from TT who gave me some vague answers with no specifics and ended our chat abruptly. At this time I decided to delete form T5013 from my return and file and submit the form later. CRA help desk advised I wait until receiving my Notice Of Assessment which I did. I then sent in form T5013 with a letter of explanation and was re-assessed. I don't need the hassle again and will never again use Turbo Tax. Regards Gord
Read Answer Asked by gord on October 07, 2015
Q: After reading many comments to Josh's disappointment, I like to add is I am happy with your service even I have been a member for less than a year and I still have some 16 credit points left. I find that your answers to members' questions very helpful and it educates me a lot. Your portfolio holdings are just models and it is our own decision which ones to buy.
What I want to do is to make the best out of the loss position: Since I had gains last year, I would like to sell the big losers (including some on your portfolio that I had bought before I joined in 5i) to carry back to last year income tax. Also, I can rebuild part of my portfolio. I would like to hear your comments. Thank you.
Read Answer Asked by LOUISA on September 30, 2015
Q: Hi 5I,

I recently sold ET for a tax loss and am considering buying it back. Is it still a good quality company worth repurchasing? Would it be better to wait until maybe November - closer to tax loss selling time? or should I just re-buy it now?

Thanks!

Read Answer Asked by Wayne on September 21, 2015
Q: I purchased shares of ABT at $9.88. Recently received a Corporate Action Notice for a Voluntary Dutch Purchase Offer of the following:
Option 1: "Auction Tender" whereby I would specify the price I want;
Option 2: "Purchase Price Tender" whereby I accept the price determined by the Company.
-OR-
Do Nothing.
Suggestion? Will these shares see $9.88 or better in future?
And, please explain the taxability of these options. Thanx
Read Answer Asked by Hanna on September 21, 2015
Q: I have a "tax" question for you.

I'm thinking of selling BTE with a $10,000 loss. I don't have any realized capital gains to offset the loss, and don't want to dispose of any of my gainers, but I don't want to carry the loss forward either.
So I'm wondering: Could I crystallize the equivalent in gains by selling BCE shares, for instance, and then buying them back immediately?

I'm aware that the superficial loss rules would come into play by not waiting 30 days, but that shouldn't be a concern with a stock like BCE.
I also realize that there may be a small cost involved with commissions and price spreads, but at the same time my ACB would be reset at the new BCE purchase price and may well save me some cap. gains taxes down the road.

What do you think?
Read Answer Asked by chris on September 17, 2015
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