Investment Q&A

Q: Hi Team,
Since it's near year end, I was wondering if you could list me some of your TOP PICK ideas for a 2023 TFSA contribution. I am looking for long term hold ideas. Thanks

Shane.

Q: Hello 5i,
This is pertaining to the question about moving stock In Kind from an RRSP to a TFSA. I have done this numerous times with RBC Direct Investing and I will recount the process as I have experienced it.
1. I will use 20% as the withholding tax amount as an example only. If you wish to transfer $6,500 of equity the tax is calculated as follows: 6,500 / 0.80% = 8,125 * 0.20% = $1,625 Withholding Tax.
2. The withholding tax can be either cash on hand in the account or the broker can be instructed to sell the required additional shares of the equity (or even of some other equity) to cover the cost of the tax.
3. The shares are transferred out to a cash/margin account, they do NOT go directly into the TFSA. They are then subsequently transferred into the TFSA within a day or two at the most - as I recall.
4. Make sure you retain copies of all transactions to capture all relevant data for tax purposes.
This has been my experience and the process has worked smoothly and quickly for me. And, kudos to RBC Direct Investing staff who have worked with me on doing this - they have overwhelmingly been helpful and knowledgeable.
I hope this helps......
Merry Christmas and Happy New Year to all at 5i and in the 5i community!!!
Cheers,
Mike

Q: Hi 5i. Merry Christmas to all !

I need some help with the mechanics of an 'in-kind transfer'. Particularly with one from a RRSP to a TFSA.

If I use the 2023 TFSA contribution limit of $6500 and want to move that amount of Stock 'A' from a RRSP to a TFSA, then I understand that withholding tax would apply to that amount.

Where does the withholding tax get paid from? I am assuming a number of Stock 'A' shares would be sold to cover the amount of tax owed. Is that correct?

Furthermore, is it possible to have the withholding tax paid from cash within the RRSP or would the tax owed be added to the transfer of $6500 0f Stock 'A' to the TFSA?

Essentially, can I move $6500 of Stock 'A' to the TFSA and pay the withholding tax from cash in the RRSP, as if they were two separate transactions.

Thanks in advance.

Martin

Q: With reference to Andrea's question on transfer-in-kind of stock to TFSA,
what if the transfer involves capital gains, instead of loss, with stocks transferred from a non registered account to a TFSA? How should the capital gains be handled?

Q: This is probably a silly question but I don't want to make a mistake.
Instead of raising 6500.00 cash for my TFSA on Jan 1st, I'm thinking about transferring stock out of my cash account instead. I've already sold my tax loss candidates. I'm not sure how this works though. If my book cost is 6500.00 and market value is 3000.00, does that mean I've contributed my full amount? And in what scenario would this be a smart idea? I could also transfer stocks with significant capital gains.

Thanks,
Andrea

Q: Hi Guys,

Your thoughts on starting a small position on Tesla.

Merry Christmas

Jim

Q: These are my holding inside my TFSA. I am 25 years old and would like to know your opinion on this Portfolio and if you think these are good longterm holdings or if they could be replaced with a better investment (please indicate what company you would replace with). Also witch companies would you consider a Buy in 2023 from these holdings for my 6,500$ contribution room.

Thanks

Q: Hi

For 2023, I can contribute $17,500 to my TFSA.

I was thinking of splitting the amount between CELH and LNTH.

Your comments or other suggestions are most welcome.

Thank you

Mike

Q: Hi Peter and team, would appreciate your thoughts on what the TFSA should be used for and why, fixed income or capital gains. Thank you

Q: Hi,
I am up 84% in CELH in my TFSA. Considering selling 1/2 position and using the funds to purchase NVDA.
It will help me diversify because the only other US stock I have is GOOG.
Willing to wait 2 or 3 years to see NVDA return to it's former glory.
Sounds ok?
Or do you think CELH is just starting to really ramp-up and I should stay with it.
Thanks for your input.

Q: The purpose of the following question is to avoid problems with CRA and avoid pitfalls, traps &c.
(1) If tax payer withdraws all their Canadian $ from a TFSA before December 31, 2022 , I understand they can re-deposit the full amount after January 1 2023. Correct? (2) I understand they can re-deposit the *full allowable* amount in US$ (i.e. the US$ equivalent of all the Canadian $ that were just withdrawn). Is that correct? (3) If yes, is it the spot exchange rate that is used for calculating the amount available to put back into the TFSA? If yes, what exactly is the spot rate, what rate is acceptable under tax rules and regs ? What source should one use to get the exchange rate to use— that CRA accepts?

Q: In my TFSA I have 3 big winners CSU GSY KXS and a few lossers AT NBLY TOY. Keeping as objedtive GROWTH what titles would you suggest adding or departing in the upcoming months?

Q: I would like to crystalize some Gains in KXS and reduce my holdings to a small amount (just a place holder).
I would like to add to the others listed above in the order of your preference.
All stocks in my TFSA.
Thank you!
Albert

Q: Hello,
>
> I transferred a stock at a sizeable loss from a cash account to my TFSA early this year before I learned about the non-deductibility in this situation. I have now sold the stock in my TFSA at a nominal gain. Is it possible to recoup and declare the loss by claiming the difference between the initial cost and the final sale? Thank you,
>
> Maria B

Q: THE PROS AND CONS OR BENEFITS OR NOT BENEFITS BETWEEN A US DOLLAR TAX FREE SAVING ACCOUNT VERSUS A CANADIAN TAX FREE SAVING ACCOUNT? ALSO, WOULD A NON-RESIDENT TAX ON US STOCKS APPLY IN A US DOLLAR TAX FREE SAVING ACCOUNT?

Q: Good evening,

I just read that the CRA has recently increased the TFSA contribution limit for 2022 up to $6,500.00.

Can you tell me if this is correct?

Thanks very much.

Q: When do you expect an announcement on 2023 Tfsa contribution limit and do you expect it will be increased from $6000 to $6500?

Q: can i buy a us stock in my tfsa such as amzm,us

Q: Looking for 5 names for my Cdn TFSA . Must pay a dividend. Currently hold GSY, ATD, BAM.A EFM, DOO, DFY.
Thank you
David

Q: I am down on these names in my TFSA account
CTS (-44%)
ENGLX (-73%)
QST (-28%)
XBC (100%)

Is it time to throw in the towel on all of these, consolidate into one name or use my next year TFSA contribution limit to dollar cost average down?

I also hold an ETF, VGRO, in this account which is down 13%.