Sold funds in non-registered account
Question: Will I have to pay taxes on the capital gains? If so, how do I find out how much the capital gains was and how much ill have to pay?
(I'm with TDWaterhouse)
Oct 23rd, 2019 10:12 pm
Oct 23rd, 2019 10:18 pm
Oct 23rd, 2019 10:49 pm
Oct 23rd, 2019 10:51 pm
Oct 23rd, 2019 10:52 pm
Oct 23rd, 2019 11:40 pm
Oct 24th, 2019 11:09 am
Oct 24th, 2019 11:27 am
Transferring cash from one bank or broker account will not incur capital gains taxes.jeffyjai wrote: ↑ Question: Does transferring from an open to another open account in cash proc capital gains? For example, I currently have an investment account at Tangerine and would like to transfer it to Quest Trade - since Tangerine would have to sell the shares first before transferring in cash to Quest Trade, would there be capital gains on it?
Oct 24th, 2019 11:50 am
Deepwater wrote: ↑ Transferring cash from one bank or broker account will not incur capital gains taxes.
It is the sale of a security that causes capital gains (or losses) to be realized, which is what triggers capital gains taxes in non-registered accounts. If you sell a security in a non-registered account and leave it in the same account, that would cause any capital gains to be realized. Then transferring the cash to another account is not a taxable transaction.
You can avoid realizing capital gains when switching brokers by transferring "in kind" which is transferring the existing shares to another broker without any sale.
In your example, I doubt if Tangerine funds could be transferred to any other broker, so yes, capital gains taxes would be due on any realized gains.
If you have a large capital gain (enough to bump you up into the next marginal tax bracket), consider spreading the sale transaction over two or more years, in order to avoid having some of the gains taxed at a higher rate. You can find Canadian tax rates by province here: https://www.taxtips.ca/marginaltaxrates.htm
Oct 25th, 2019 10:06 pm
Oct 25th, 2019 10:24 pm
There is no tax obligations in terms of moving these funds into these types of accounts provided you have the contribution room. But based on the fact you made some money on the funds you will have some capital gains and probably some dividend/interest income to declare this year. If you were invested in funds at TDWaterhouse, they will send you a T5 receipt and a T5008 early next year outlining the distributions and capital gains taxable.
Oct 28th, 2019 2:33 am
Oct 28th, 2019 9:00 am
Nothing with regards to capital gains. Only need to report any income received but that will show up on tax forms you will receive.
Oct 29th, 2019 8:34 pm
xgbsSS wrote: ↑ There is no tax obligations in terms of moving these funds into these types of accounts provided you have the contribution room. But based on the fact you made some money on the funds you will have some capital gains and probably some dividend/interest income to declare this year. If you were invested in funds at TDWaterhouse, they will send you a T5 receipt and a T5008 early next year outlining the distributions and capital gains taxable.
Curious, what fund did you purchase if you could not handle the ups and downs of the fund? How long did you invest in these funds? If these funds are for long term investing (since you plan to be placing them into your RRSP, TFSA), why were you checking so often? You will pay taxes but I think there is a larger behavioral problem to your investment approach that may be hindering your financial goals that needs to be addressed, although it could also be the funds that were selected for your investment Could you tell me the name of your fund (s) that your TD advisor set you up with? Could you explain a bit more into your fears you felt with the funds? Do you have other financial obligations or worries at the moment which has you fearing about the money you have invested? Feel free to post or PM me and we can discuss this.
Oct 30th, 2019 9:30 pm
Part of the problem I'm seeing here is that you have no concise strategy for your funds. You were saving for the downpayment, but you waivered and sold early. The fluctuations in the value of your funds is normal. We had a slight correction end of 2018 and a fairly nice recovery 2019 so the value of your funds should have dropped only to recover. Unfortunately you missed out on the recovery.AnnCook wrote: ↑ I had invested TDB622C, TDB911C, TDB622C since October 2017.
If you remember from one of my earlier threads, we are saving up towards a downpayment to buy a house soon. Seeing the crazy fluctuations in the beginning of the year, I couldn't deal with the changes thinking that we would need to buy this year. But due to personal reasons and seeing the housing market, we might push out buying for a year or so. In hindsight I should have just waited because we changed plans later on.
Now my plan is to move money from here to our TFSA and RRSP to max out the quotas. What should I invest the remaining funds in this account? CCP strategy TD eseries? or GIC?