How to go about securing the best return for your investment in Canada.
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From RRSP to RRIF—managing your investments in retirement Nov 14th
Retirement brings many changes in a person’s life and your investment portfolio is one of them. Tracy Andrade, a wealth adviser and certified financial planner at Marnoa Private Wealth Counsel, says it’s challenging for people to see their savings start to decline as they begin spending .... More »
NATO set to unveil billions in arms deals to prove its firepower to Trump + MORE Jul 7th
ANKARA, Turkey (AP) — NATO on Tuesday will showcase a series of new military projects worth billions of dollars in an attempt to convince U.S. President Donald Trump that the allies are stepping up defense spending and converting investment into….... More »
Canadians to see lower fees and simpler account transfers + MORE Nov 6th
Ottawa plans to make it easier for Canadians to move their banking and investment accounts in a bid to increase competition and reduce costs for consumers. The government said as part of Tuesday’s federal budget, it will move to eliminate investment and registered account transfer fees, which .... More »
Your American spouse may not want to inherit your TFSA Jun 2nd
Most Canadians assume leaving a tax-free savings account (TFSA) to a spouse is one of the simplest estate-planning decisions they can make. But when that spouse is a U.S. citizen, green card holder, or otherwise subject to U.S. tax filing requirements, inheriting a TFSA can create years of IRS repor.... More »
Are women getting the right advice about RESPs? Apr 30th
When my first child was born in early 2011, I wanted to set up a registered education savings plan (RESP) as soon as possible. My husband didn’t have any student debt of his own, but I’d left university with over $40,000 owing on a line of credit—a huge number that I carried into our marriage .... More »
How to handle a stock with a huge capital gain
– moneysense.ca
If you hold investments in a taxable non-registered account, then income tax considerations ought to be part of your investing decision-making process. Although capital gains tax rates in Canada are relatively low, with only 50% of a capital gain being taxable to an investor, the dollars of tax payable can grow large if an investment performs particularly well or if a stock is held for many years.
Here are five things you should think about when a capital gain could be significant, and some solutions investors can consider.
1. The break-even return for a replacement stock
The break-even return is worth considering if you are on the fence about paying tax to sell an investment.
Imagine you own a stock that you purchased for $10,000 and is now worth $20,000. There is a $10,000 deferred capital gain. If we assume you are in a 35% marginal tax bracket, the tax payable on the sale of the stock would be $1,750.
That tax would be 8.75% of the sale price in this example. That is, $1,750 divided by $20,000 would disappear to tax…
