Search found 1380 matches

by big easy
19 Mar 2024 13:33
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44265

Re: New T3 requirements for joint accounts [that might be bare trusts]

I don’t “hate” CRA or the “government”. They are trying to “catch” tax cheats who hide their income offshore or in trusts. That’s fine by me. If this effort requires me to file an almost totally blank T3 I’m ok with this. Although, I don’t really understand why it’s required for such a reasonable objective. Agreed, I don't see how filing a T3 related to income already reported to CRA on T-slips is going to do anything about offshore accounts or trusts. CRA needs to say that joint accounts are off the table. Sure, there is illegal income splitting going on but that's a drop in the bucket. I can't find much evidence of headway being made on the Panama papers btw. How about some RICO legislation to catch organized crime worth billions? https:...
by big easy
19 Mar 2024 12:51
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44265

Re: New T3 requirements for joint accounts [that might be bare trusts]

AltaRed wrote: 19 Mar 2024 12:34 Being joint on an account is far different than exercising POA on an account. They are not remotely the same legal process and that could be seen as a charade by CRA. I can't comment on whether your spouse should file a T3 just in case, especially if her mother is still actively managing her accounts.
Sounds like CRA can take whatever position it wants and impose fines which you have to fight with expensive tax lawyers. No wonder people hate the government which they equate with CRA. I think people are getting pissed off and complaining - lots of articles in the NP and G&M, so hopefully CRA will reverse course on this one.
by big easy
19 Mar 2024 12:27
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44265

Re: New T3 requirements for joint accounts [that might be bare trusts]

In our case my wife is joint on her mother's investments and bank account. This was done years ago and without consulting my wife, to avoid probate. Mother pays all the taxes. My wife makes no transactions, except 1x per year to pay her mother's taxes online (elderly mother is not computer savvy). My wife is also POA for her mom, so it could be argued she is acting as POA for any transactions made on her behalf. From my perspective, this is not a trust because my wife is not acting as trustee, she is merely on title to assume the assets on her mother's death. Perhaps most importantly, she is an only child so there will be no relatives disputing the right of survivorship. Do we really have to file a T3? Perhaps a separate document is require...
by big easy
13 Mar 2024 20:00
Forum: Retirement, Pensions and Peace of Mind
Topic: The government is considering changing investment objectives for CPP
Replies: 35
Views: 1506

Re: The government is considering changing investment objectives for CPP

I guess the banks, telecoms, airlines et al can't survive in their cozy little oligarchies without more funds from their hostages customers. I hope we get a whole whack of those Bombardier and Rogers B shares.
by big easy
13 Mar 2024 19:31
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Real Return Bonds
Replies: 1545
Views: 242833

Re: Real Return Bonds

Here are current real yields of RRBs in XRB according to iShares. Name Coupon (%) Maturity Real YTM (%) Canada 4.25 01-Dec-26 2.02 Canada 4 01-Dec-31 1.58 Canada 3 01-Dec-36 1.56 Canada 2 01-Dec-41 1.54 Canada 1.5 01-Dec-44 1.52 Canada 1.25 01-Dec-47 1.47 Canada 0.5 01-Dec-50 1.39 Canada 0.25 01-Dec-54 1.32 Manitoba 2 01-Dec-36 2.62 Ontario 2 01-Dec-36 2.5 Quebec 4.5 01-Dec-26 2.77 Quebec 4.25 01-Dec-31 2.38 Quebec 3.25 01-Dec-36 2.47 Source: https://www.blackrock.com/ca/investors/en/products/239490/?referrer=tickerSearch and click Download Holdings to download the CSV file which has more info. Unfortunately, the download no longer provides the real YTM. Anyone have another source for RRB quotes, other than calling your broker?
by big easy
12 Mar 2024 19:26
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: TD Direct Investing (was Waterhouse) Service
Replies: 3927
Views: 433296

Re: TD Direct Investing (was Waterhouse) Service

A T3 for XIU showed up in eDocuments this morning but now it's gone again. :roll: I know I'm not hallucinating because I downloaded it as soon as I noticed it and I check once or twice a day.
by big easy
05 Mar 2024 01:07
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Split Stock Funds, Preferred shares
Replies: 9
Views: 583

Re: Split Stock Funds, Preferred shares

Hello, Here is what I understand of split shares, they are complicated beasts. A split share corporation typically owns publicly traded securities and issues both a preferred share and a capital share. The preferred shares pay fixed dividends and have the first call on the corporation's assets. The capital shares are entitled to dividends set by the corporation and may increase in value or go to zero whereas the preferred share redemption value will not exceed its initial offering price but could be less if the underlying assets do poorly or payouts/expenses are too high. Split share preferreds typically have a maturity date of 5 years from the initial offering. On the maturity date, typically the preferred share holder may opt to receive t...
by big easy
03 Mar 2024 23:50
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44265

Re: New T3 requirements for joint accounts [that might be bare trusts]

https://www.moneytalkgo.com/video/share-a-joint-account-with-a-parent-this-new-tax-rule-could-apply-to-you/?src=grapevine Interview with Nicole Ewing, Director of Tax and Estate Planning at TD Wealth * And are all joint accounts considered bare trusts? Because you said there's lots of nuance. Are there some guidelines we can think about? * So there are, but it's really, really tricky. This is a very nuanced area of law. We have legislation, and there's a lot of case law that is difficult to blend, because we have both trusts for tax purposes and trusts for trust law purposes, which are not necessarily the same thing. But with respect to joint accounts specifically, if you have a, we'll call it a true joint account with a spouse, where you'...
by big easy
03 Mar 2024 11:10
Forum: Under the Mattress: Protecting Your Money
Topic: 5-year laddered GICs
Replies: 29
Views: 1393

Re: 5-year laddered GICs

Have you considered moving your GICs to a discount broker or GIC broker to have more choice? Do you hold your GICs in registered accounts where the tax is deferred (RSP) or no tax is payable (TFSA)? Or do you use your TFSA for growth (equities)? GICs are just part of the puzzle. And yes, I use a GIC ladder as part of my fixed income allocation inside RSPs.
by big easy
02 Mar 2024 23:10
Forum: Community Centre
Topic: travel to BC end of April?
Replies: 7
Views: 542

Re: travel to BC end of April?

South of Tofino between Sooke and Port Renfrew you have the Juan Du Fuca Marine Trail which provides day hiking opportunities or a 4-5 day backpack along the coast. Rent a car and visit Victoria, camp at China Beach, head up to Port Renfrew then head over to Tofino. Note it can be rainy this time of year but that is generally the case in BC.
by big easy
01 Mar 2024 23:00
Forum: Taxing Situations
Topic: Tombstone Data : Beneficaries and Succession Holders
Replies: 4
Views: 390

Re: Tombstone Data : Beneficaries and Succession Holders

Has anyone noticed the absence of crucial tombstone data, such as beneficiary or succession holder details, on tax forms or account statements? This seems like vital information that should be readily accessible at the trustee site. It appears that Scotiabank/iTrade has obscured this information, making it difficult to locate or validate its correct during any reasonable annual review process. Am I forced to call and ask them to send me a letter validating beneficaries and succession holders on my registered accounts? This information cannot be found anywhere at TDDI. You have to call in to ensure all is in order. I thought I'd done all this when I converted my LIRA to a LIF but when I called to check I found out a successor annuitant was ...
by big easy
01 Mar 2024 21:09
Forum: Community Centre
Topic: RIP 2024
Replies: 34
Views: 2804

Re: RIP 2024

I saw Brian Mulroney speak when I was a student at the University of Waterloo - he was an impressive presenter. Some wise guys had a sign that said Nuke the Whales. At then very end of his talk he said tongue in cheek, "if elected I promise you we will nuke the whales" to wild applause. He indeed had a sense of humor.

Also from Peter Mansbridge's "The Bridge" podcast: Apparently Robert Fife was as much a thorn in Mulroney's side as he now is in Trudeau's. Somehow Mr. Mulroney was behind the wheel of a Jeep in the presence of some journalists. He shouted to the journalists something like "move out of the way so I have a clear shot at Fife".
by big easy
28 Feb 2024 12:11
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3898

Re: Single premium immediate annuity (SPIA)

From the finiki article, a link to current quotes:
https://lifeannuities.com/articles/2023 ... le_annuity

I like to convert the payments to a percentage payout. Currently at 65 it is approximately 7% ($588x12/100,000, no guarantee period). I think you can get close to this on a perpetual preferred with the option of selling the shares in future.

As you age the payouts get better and so this is probably why people recommend waiting until you are 80 or so. One must also consider the risk of high inflation eating away at your purchasing power but that risk diminishes as your time horizon shortens.
by big easy
28 Feb 2024 11:21
Forum: Under the Mattress: Protecting Your Money
Topic: High interest savings, GICs and MMFs (2024)
Replies: 200
Views: 16775

Re: High interest savings, GICs and MMFs (2024)

Out of curiosity, I clicked on a TD 5yr market linked GIC "TD US Top500 5YR" which I presume is linked to the return of the S&P500. The maximum return is advertised at 32%. Sound enticing? That works out to 5.07% compound annual return. The minimum guaranteed return is 2.29%. A garden variety 5yr GIC at TD can be had at 4.37%. Why bother? Highly disingenuous of TD to advertise 32% and not give the compound annual return.
by big easy
20 Feb 2024 11:06
Forum: Financial News, Policy and Economics
Topic: Inflation
Replies: 1010
Views: 155667

Re: Inflation

In July 2023, the CPI Index was at 158.1. Now at 158.3, so unless something unexpected happens, expect a big drop in year over year inflation this summer.
by big easy
19 Feb 2024 13:37
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318279

Re: Preferreds

And unlike annuities, you or your heirs have the prospect of getting some of your capital back in the future. Maybe. If most, or all, issuers are doing as BCE is doing, with an annual NCIB and block trades, outstanding float could shrink rather quickly over the next 5 years. There is no particular need for an issuer to redeem in that case, although it could conversely be argued that taking out the remaining residual of an issue at par wouldn't be all that costly either. Either way, the issuer holds all the cards. Floating and fixed reset issues may have had their heyday with little likelihood of new issues being marketed any time soon. Added: Maybe James has some idea what the current annual rate of shrinkage is across all reset issues in ...
by big easy
19 Feb 2024 12:56
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318279

Re: Preferreds

jiHymas wrote: 19 Feb 2024 10:18
canadian.100 wrote: 18 Feb 2024 08:04 ... I consider my present Pref Shares be treated as an "Annuity" and I should just keep collecting the dividends and ignore the market value
clason wrote: Like MaxedOut, I buy the yield (or a pseudo-annuity) rather than a security. I don't fret over the price, unless it's time to add.
Geez, I wish this forum had a "like" button!

Fixed income investment has a fundamental choice between Security of Income vs. Security of Principal. Preferred shares are way, way over to the 'security of income' side. If that's what you want, great!
And unlike annuities, you or your heirs have the prospect of getting some of your capital back in the future.
by big easy
18 Feb 2024 19:12
Forum: Taxing Situations
Topic: When to expect tax slips in 2024 for 2023 tax return preparation
Replies: 21
Views: 2197

Re: When to expect tax slips in 2024 for 2023 tax return preparation

I can save as PDF except when using Represent a Client to do others' taxes. Then the PDF option does not appear and other wonky stuff happens. If it allows you to print, then you can use the "Microsoft Print to PDF" feature in Windows. Instead of printing to your printer, open the print menu by pressing Ctrl+P. Under the “Printer” drop-down menu, select “Microsoft Print to PDF” or “Save as PDF” depending on the browser.. If you select this it will create a pdf that you can save to a directory rather than sending the file to the printer. ltr True but the format is not at all like the usual T3 or T5. It appears as two columns, with box number in one column and the amount in another column. It looks really weird. Sometimes the T-sli...
by big easy
18 Feb 2024 19:08
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44265

Re: New T3 requirements for joint accounts [that might be bare trusts]

Another perspective from a tax partner (lawyer or accountant I presume):

https://www.bnnbloomberg.ca/new-tax-rep ... -1.2033896

The tax partner says/implies that for a bare trust to exist, the trustee must act as an agent for the beneficial owner and in other words is managing the account for the true owner. I conclude that if the joint owner is passive and is only on title for a right of survivorship, there would be no bare trust arrangement. If you are managing a joint account for an elderly parent, then that would appear to be a bare trust and subject to T3 reporting if over $50,000.
by big easy
18 Feb 2024 01:35
Forum: Taxing Situations
Topic: When to expect tax slips in 2024 for 2023 tax return preparation
Replies: 21
Views: 2197

Re: When to expect tax slips in 2024 for 2023 tax return preparation

like_to_retire wrote: 17 Feb 2024 12:52
OnlyMyOpinion wrote: 17 Feb 2024 12:22 I see (on my laptop anyway) that I can't print individual slips on the CRA site to a pdf.
I have no problem printing or saving to pdf any individual form.

Screenshot 2024-02-17 125001.jpg

ltr
I can save as PDF except when using Represent a Client to do others' taxes. Then the PDF option does not appear and other wonky stuff happens.
by big easy
04 Feb 2024 12:12
Forum: Community Centre
Topic: Tipping
Replies: 38
Views: 1652

Re: Tipping

Seems like a 20% tip in the US is common, if not the standard. Ouch. Anecdotally, I know of someone that worked as a server at a popular restaurant chain here in BC. This 20 year old made more in tips/wages than their manager. Does that make sense? I think he said he averaged $300/night in tips.
by big easy
04 Feb 2024 11:45
Forum: Community Centre
Topic: Tipping
Replies: 38
Views: 1652

Re: Tipping

SQRT wrote: 04 Feb 2024 09:55 Yes, tipping has gotten a little out of hand. Easy solution, just don’t. I really think that most people who feel strongly about this are pretty immune from any “shaming”.
We used to go to a restaurant once a week for dinner. Now we just eat at home or do takeout (no tip) - another easy solution. Restaurants might be able to attract more staff by shaming customers into ever higher tips, but at what cost to their sales?
by big easy
31 Jan 2024 15:53
Forum: Financial News, Policy and Economics
Topic: Clippings 2024
Replies: 129
Views: 10325

Re: Clippings 2024

Technology companies are the new superpowers.

by big easy
31 Jan 2024 09:40
Forum: Under the Mattress: Protecting Your Money
Topic: High interest savings, GICs and MMFs (2024)
Replies: 200
Views: 16775

Re: High interest savings, GICs and MMFs (2024)

Bylo Selhi wrote: 30 Jan 2024 21:22
big easy wrote: 30 Jan 2024 17:48 So what are people going to do if/when interest rates (MMFs & GICs) go back to 1-2% range?
I'll cheer.

I'd rather earn 2% interest when inflation is running at 2% than 5% interest when inflation is running at 5% (or more.)

With the former, at a 50% marginal tax rate, my real return is -1%. With the latter it's -2.5%. Neither is ideal but the former is the lesser of the two evils.
That's a better way of stating my question. What will people do if/when real returns on fixed income products go negative. Right now with inflation at around 3% and 5 year GIC's at 4%, its possible to get a positive real return but that might not last.
by big easy
30 Jan 2024 17:48
Forum: Under the Mattress: Protecting Your Money
Topic: High interest savings, GICs and MMFs (2024)
Replies: 200
Views: 16775

Re: High interest savings, GICs and MMFs (2024)

So what are people going to do if/when interest rates (MMFs & GICs) go back to 1-2% range? I still have a few dogs in my GIC ladder. I made some small investments in split corp. preferred shares but mostly just rolled my ladder. I also put some money into VRIF which has not worked out so well (still underwater). Maybe next time I will roll the dice and stick to 1 year GICs awaiting higher rates.