What is the fiscal treatment of short selling a stock ? Am I entitled to declare capital gains/loss ? If so how is the ACB and disposition price calculated ? Can I deduce any borrowing fees for the lended shares ?
Thanks.
Search found 199 matches
- 15 May 2007 19:57
- Forum: Financial News, Policy and Economics
- Topic: Fiscal impact of short selling
- Replies: 3
- Views: 636
- 02 May 2007 07:19
- Forum: Retirement, Pensions and Peace of Mind
- Topic: DPSP & EPSP Questions
- Replies: 57
- Views: 15468
Re: Employer Stock Purchase Plan : need advice
Actually I don't think it's a sale per se. They will be issuing *new* shares to the employees. There might be a delay between the time they issue the shares and have them transferred to the brokerage accounts of everyone. I don't know the whole process behind this, but I'll make sure to ask questions on this. Thanks for poiting out the T4130, it'll sure be handy.sevimo wrote:How they're going to enforce the "no-sale-for-2-weeks" rule? If they deposit shares into your brokerage account at the sale date, then what prevents you from selling immediately?
- 01 May 2007 21:59
- Forum: Retirement, Pensions and Peace of Mind
- Topic: DPSP & EPSP Questions
- Replies: 57
- Views: 15468
- 01 May 2007 20:59
- Forum: Retirement, Pensions and Peace of Mind
- Topic: DPSP & EPSP Questions
- Replies: 57
- Views: 15468
DPSP & EPSP Questions
My employer will soon offer a company stock purchase plan for its employees. Here are the main highlights of the plan : This is a single one-time transaction. The employee can buy up to 20% of his base salary in stocks of the company. The employer offers a discount of 15% off the stock price on the day of the transaction. New shares will be issued according to the demand from employees. According to my worst case estimates the dilution effect will be negligible on the stock given its current capitalization (1 billion$ +). Employees will be able to sell the stocks two weeks later (all at the same time - that's the scary part). Personally, I am not too enclined in investing in the same company which brings the food on the table, but on the ot...
- 16 Apr 2007 20:49
- Forum: Financial Planning and Building Portfolios
- Topic: RRSP screw up
- Replies: 2
- Views: 712
RRSP screw up
Ok.
My wife screwed up. She's put money in her Spousal RRSP instead of her RRSP. The problem is it seems the contribution got attributed to me because of this (at least on the receipt she received). However I don't have any RRSP room left to 'absorb' the error.
Is it bad ? Can she deduct it as a contribution of her own when she files her taxes (as it was intended) ? Should I do something about it or just let go ?
Thanks
My wife screwed up. She's put money in her Spousal RRSP instead of her RRSP. The problem is it seems the contribution got attributed to me because of this (at least on the receipt she received). However I don't have any RRSP room left to 'absorb' the error.
Is it bad ? Can she deduct it as a contribution of her own when she files her taxes (as it was intended) ? Should I do something about it or just let go ?
Thanks
- 16 Apr 2007 20:20
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
- 30 Mar 2007 21:35
- Forum: Taxing Situations
- Topic: Bartering as a way to avoid tax ?
- Replies: 8
- Views: 1104
Bartering as a way to avoid tax ?
I was wondering, let's say I work voluntarily part time for a grocery store. Could I barter my voluntary time for some free food ?
Should I tell the CRA about it and would they bother ?
A not-so-hypothetical question. I would see many retired people benefit from this (if it works).
Emp
Should I tell the CRA about it and would they bother ?
A not-so-hypothetical question. I would see many retired people benefit from this (if it works).
Emp
- 26 Feb 2007 16:39
- Forum: Financial Planning and Building Portfolios
- Topic: Giving money to spouse ?
- Replies: 11
- Views: 1030
- 26 Feb 2007 16:19
- Forum: Financial Planning and Building Portfolios
- Topic: Giving money to spouse ?
- Replies: 11
- Views: 1030
Giving money to spouse ?
I've read on this forum that it is legal to donate money to your spouse so she can pay her taxes and invest in her RRSP. Is that true ?
If so then can I do the following legally ?
As the higher income spouse I pay all the bills, my wife's taxes, her RRSP, etc.
So my wife's total gross salary is invested each year in a taxable account, in order to split income.
Would that work ? The thing I'm not sure about is if I'm allowed to pay her taxes since they are automatically deducted from her pay (by opposition to a self-employed person who is required to make provisional accounts). If not is there a way I can circumvent that ?
Emp
If so then can I do the following legally ?
As the higher income spouse I pay all the bills, my wife's taxes, her RRSP, etc.
So my wife's total gross salary is invested each year in a taxable account, in order to split income.
Would that work ? The thing I'm not sure about is if I'm allowed to pay her taxes since they are automatically deducted from her pay (by opposition to a self-employed person who is required to make provisional accounts). If not is there a way I can circumvent that ?
Emp
- 26 Feb 2007 14:01
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
- 26 Feb 2007 13:58
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
Wouldn't that open the doors to other income splitting tricks ? Like having your wife pay all her taxes as provisional accounts. Then you give her the money to pay her provisional accounts... She basically ends up with her gross salary in her pockets instead of her net.adrian2 wrote:Same for giving your wife money to pay her share of taxes to CRA.
Emp
- 26 Feb 2007 13:29
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
You mean to fill her own contribution room (not mine) ? I've always thought spousal RRSP would eat up my contribution room, not hers. I'm really surprised by what you say. Do you have a link I can read as a proof of that ? Seems I still need to do some reading on attributions rulesadrian2 wrote:It's perfectly ok to give your wife money to contribute to her own RRSP - there are no attribution rules in such a case.
That proves my point though, the law is anything but obvious.
Emp
- 26 Feb 2007 12:28
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
I suspect there are many thousands (tens of thousands?) of taxpayers who unknowingly (and perhaps knowingly) are offside with the law. You can't imagine how many people laugh at me and call me crazy when I tell them they cannot use their own money to fill the RRSP room of their wife. With the widespread use of joint bank accounts, I'd say 95%+ of the population is unaware that tax laws expect each spouse to treat their income separately. I believe this is so out of control that it should be the government's responsibility to educate people properly (or otherwise change the laws). It's not common knowledge like "you can't murder" or "you shouldn't steal". They cannot expect average Joe to know the nitty gritty details of...
- 25 Feb 2007 20:55
- Forum: Financial Planning and Building Portfolios
- Topic: New take on RRSP meltdown
- Replies: 22
- Views: 3974
Thanks a lot for your answers. I'm not familiar with this kind of trick but I definetly intend to study your idea carefully. As a DIY investor I'm always happy to learn new stuff. There are two assumptions in your scheme on the taxable account : 1- The equities are buy-and-hold. (For tax efficiency). 2- The equities are canadian companies (for the favorable tax treatment of canadian dividends I guess ? - DTC) I believe your analysis is flawed because you imply that the return in the taxable account will be the same as the return in the RRSP. The RRSP doesn't have any of the constraints above. Without these constraints, I believe the RRSP can acheive a better long-term return. Especially with the current valuation of canadian companies compa...
- 25 Feb 2007 17:45
- Forum: Financial Planning and Building Portfolios
- Topic: New take on RRSP meltdown
- Replies: 22
- Views: 3974
- 24 Feb 2007 23:20
- Forum: Financial Planning and Building Portfolios
- Topic: New take on RRSP meltdown
- Replies: 22
- Views: 3974
- 22 Feb 2007 22:20
- Forum: Taxing Situations
- Topic: 2007 federal budget
- Replies: 186
- Views: 22577
I encourage everyone to fill out the federal pre budget survey to push for their ideas :
http://www.fin.gc.ca/scripts/prebudgets ... asp?lang=e
Emp
http://www.fin.gc.ca/scripts/prebudgets ... asp?lang=e
Emp
- 07 Feb 2007 20:41
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
I am curious if you could ask your friend :twa2w wrote:I asked a friend who works with Rev Can if he had ever heard of income splitting thorugh a prenup - he said no, and he couldn't see Rev Can accepting it. He did say he is aware of a few people divorcing to take advantage of tax issues. (something I actually contemplated at one time but my wife Kibashed )
Cheers
j
Does Rev Can actually inquire on those cases of divorce for tax reasons, and if so have there been some cases where they won in court ?
- 07 Feb 2007 20:37
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
Unfortunately I don't think that's how the CRA sees it (I might be wrong though, anyone ?). If it was so easy that you could give "household expense money" to your wife, then what would be the limit ? I'd certainly give her 50k a year for her "expenses"...
Income splitting is allowed in many OCDE countries (France, USA, etc.), but not in Canada. It is very unfortunate that the divorce is the best income splitting strategy available to us canadians...
Emp
Income splitting is allowed in many OCDE countries (France, USA, etc.), but not in Canada. It is very unfortunate that the divorce is the best income splitting strategy available to us canadians...
Emp
- 06 Feb 2007 07:58
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
The most absurd thing IMO is that our fiscal system makes a divorced couple more tax-effective than a married couple...
Shouldn't it be the opposite, considering the family is at the hearth of canadian values and that we need children as a workforce in order to pay the public services of the future ?
This situation is really embarrassing and should be addressed ASAP by politicians.
Emp
Shouldn't it be the opposite, considering the family is at the hearth of canadian values and that we need children as a workforce in order to pay the public services of the future ?
This situation is really embarrassing and should be addressed ASAP by politicians.
Emp
- 05 Feb 2007 23:28
- Forum: Taxing Situations
- Topic: Income splitting trick ?
- Replies: 72
- Views: 6087
Income splitting trick ?
Imagine a typical couple with a big income disparity between the spouses. One makes 100k$/yr and the other stays home and earns nothing. Since our fantastic tax system doesn't allow income splitting between the spouses, the working spouse will eventually amass a good deal of non-reg investments, whereas the stay-at-home spouse will have nothing. Tax-wise, it would be great if the lesser income spouse could hold the non-reg account in its name so the capital gains & dividends get taxed within her hands (at a lower tax bracket). But AFAIK you can't just donate your non-reg acount to your spouse (it would be considered a revenue and get re-taxed, ain't that dumb ?). I was thinking of this recently and it struck me. The idea seems too good ...
- 27 Jan 2007 17:45
- Forum: Taxing Situations
- Topic: Attribution Rules - Questions
- Replies: 132
- Views: 19981
Is it really worth it ?
I mean, there is a 100k$ gap between my salary and hers. To make it even she would need to borrow me a couple million dollars (which I don't have) to make a decent dividend revenue. Most of my revenue does not come from my investments, it comes from my salary. How can I split my salary with her ?
I don't see the effectiveness of this type of income splitting... Can someone explain ?
I mean, there is a 100k$ gap between my salary and hers. To make it even she would need to borrow me a couple million dollars (which I don't have) to make a decent dividend revenue. Most of my revenue does not come from my investments, it comes from my salary. How can I split my salary with her ?
I don't see the effectiveness of this type of income splitting... Can someone explain ?
- 27 Jan 2007 16:07
- Forum: Taxing Situations
- Topic: Attribution Rules - Questions
- Replies: 132
- Views: 19981
I'd sure be interested in income splitting with my spouse but everything I read on that topic seems overly complex. The best strategy I've read involved my spouse 'borrowing' money from me to invest it. Seems overly complicated and a nightmare to set up properly (tax-wise)...
Income splitting should be automatic, just like in France or USA, or almost every other developed country in the world !!!
Income splitting should be automatic, just like in France or USA, or almost every other developed country in the world !!!
- 27 Jan 2007 15:43
- Forum: Taxing Situations
- Topic: Attribution Rules - Questions
- Replies: 132
- Views: 19981
Tax deferring strategies ?
Considering I always max out my RRSP contributions every year, I do accumulate savings much faster than my RRSP can absorb. I really appreciate the tax-deferring power of the RRSP, so I'm looking for alternative ways to invest my extra savings into tax deferred vehicles. However I don't see much options : 1- Buy & hold growth stocks for the long term (easier said than done) 2- Buy a bigger house than needed since the gains on primary residence is tax free (buying bigger house means bigger expenses, and I don't like the idea of spending for stuff I don't need) So anyone has other ideas ? I currently do option number 1 (hoping the companies I picked will do well in the long term, but who knows ?), but I wonder what other people do ? Thank...