Canadian Money Forum banner

1 - 16 of 16 Posts

·
Registered
Joined
·
4 Posts
Discussion Starter · #1 ·
So, I realized I have more capital gains than i want to pay out this year
  • have utilized all my previous year losses - so cant use that as an offset
  • sadly didn't contribute enough to rsp to defer some of the hit ( i foolishly relied on itrade the last day and the online system didnt work - first time thi ever happened -- all the shitter trading GME and day gamblng has caused that service to go to **** -- waited 1.5 Hours one day to speak to someone)

Any advice, other thoughts? I can't claim more RSP next year and "carry back " some how?
 

·
Registered
Joined
·
11,221 Posts
You can't carry back RSP contribuions to a previous year.

Don't necessarily beat on iTrade. Why wait to the last day (Mar 1 this year) to make RSP contributions? You've surely known about your 2020 cap gain/loss situation since shortly after the first of January (from your own data records).
 

·
Registered
Joined
·
4 Posts
Discussion Starter · #3 ·
You can't carry back RSP contribuions to a previous year.

Don't necessarily beat on iTrade. Why wait to the last day (Mar 1 this year) to make RSP contributions? You've surely known about your 2020 cap gain/loss situation since shortly after the first of January (from your own data records).
thnx,

Yeah yeah i hear you, in fact my plan to contribute would not have offset the entire amount. Busy dealing with sick family members due to covid end of Feb and didnt focus as much on Financial planning.
Just saying itrade didnt help ( funny made a contribution for the spouse, but mine wouldn't go through all day tried three different times).
 

·
Registered
Joined
·
535 Posts
There are worse problems to have than too much taxable capital gains.......like....capital losses.
It amazes me to hear some CMF'ers to almost express joy when they have a loss to offset a CG or otherwise bemoan the fact they don't have a loss to use. Personally all green all the time is what I strive for.
 

·
Registered
Joined
·
2,101 Posts
It amazes me to hear some CMF'ers to almost express joy when they have a loss to offset a CG or otherwise bemoan the fact they don't have a loss to use. Personally all green all the time is what I strive for.
I can see making the best of the situation, i.e. capital loss, but I agree it's a little odd to complain when you make money. But I guess it's the idea that the government gets paid. Somehow, people find it more acceptable to have a $10k CL to offset a $10k CG instead of paying your marginal tax rate on $5k.

It's kind of like the Americans stringing out their mortgage as a tax planning strategy by paying more to the bank in interest, than paying taxes to the government.
 

·
Registered
Joined
·
535 Posts
It's kind of like the Americans stringing out their mortgage as a tax planning strategy by paying more to the bank in interest, than paying taxes to the government.
[/QUOTE]
Oh I've had loses too and for sure I use them but if I loose $100 and get a credit for $25 against future gains I understand I've still lost $75.00. But frankly some of the posts I see make me wonder if they understand that. Kinda like people who decline overtime because they think it will put them in a higher i/t bracket.

Yah, I 've had lots of my American friends say ... "my accountant says I'm running out of deductions" . So they go and get a bigger mortgage just to spend on depreciable junk and life style. Unfortunately we also see a version of that with low rates with people saying why should I pay down my mortgage the rates are so low. Fine if you're doing something positive with the excess money but many are not .
 

·
Registered
Joined
·
2,101 Posts
Oh I've had loses too and for sure I use them but if I loose $100 and get a credit for $25 against future gains I understand I've still lost $75.00. But frankly some of the posts I see make me wonder if they understand that. Kinda like people who decline overtime because they think it will put them in a higher i/t bracket.
Well, when tax time comes around, there's always articles about capital loss harvesting to offset gains. I mean, sure, if the particular holding is a dog and you don't see any upside to it, go ahead and sell it. But to sell it just for the sake of offsetting capital gains is having the tail wag the dog.
 

·
Registered
Joined
·
665 Posts
This might surprise some but we are currently actively selling and repurchasing the stocks that are up by more than 20% in wifes non reg account. She is early retired currently pulls enough out of rrsp after non reg divvy's to land her just under 46K. This year with cap gains she will be above the lowest tax rung, but the first few steps the marginal tax are pretty small bumps in the marginal rate.

We are working to pay capital gains while the taxable amount is a known 50%, versus unknown inclusion rate that may be taxable after 19 April. Plus once she gets a bit older and the cpp oas and rrif engines get going the taxable amount will rise. So we also are working to pull the rrsp down every year to bring her around 46K and pour the funds into keeping tfsas full up in allowed contributions.
 

·
Registered
Joined
·
535 Posts
I dont think the inclusion rate increase will happened on the 19th but it will likely happened after the libs are re elected. I did a bunch of churning also for that reason and may do more in jan 2022 if the opportunity still exists.
 

·
Registered
Joined
·
140 Posts
If I were to sell my BRK.B in my BMOIL margin a/c (to avoid any increase in inclusion rate) would I need to wait any time before buying back - to avoid anything unexpected? Can I buy back same day? next day? week later? month later? longer?
 

·
Registered
Joined
·
535 Posts
If I were to sell my BRK.B in my BMOIL margin a/c (to avoid any increase in inclusion rate) would I need to wait any time before buying back - to avoid anything unexpected? Can I buy back same day? next day? week later? month later? longer?
As AR says you're fine as long as you don't sell at a loss. I would add, be sure you SELL before you re buy otherwise your ACB will be affected. I did screen captures to show the timing, as the actual confirmation slips only show the date.
 
1 - 16 of 16 Posts
Top