Brookfield Office Properties Inc T.BPO.PR.A

It's not even close

[CrazyTrader]

Holding $95,000 in GICs, what's the income?  $4,750?      What's the taxes on that?

If in TFSA, zero.
If in Margin/Cash Account, $2,375?   minus dividend tax credit.


Holding $95,000 BPO, what's the income $9,500+    Plus if lucky 100% capital gain of $95,000.   What's the taxes on that?

If in TFSA, zero.
If in Margin/Cash account, $4,750? minus dividend tax credit, plus ~$25,400 capital gains tax.


It's not even close.   For same investment amount,   BPO in TFSA and GIC in Margin you pay way way less tax.

[CrazyTrader]

$2,375   vs  $30,150    in taxes.    This is very rough estimates but the difference is so great you don't need to check any further.   It's not even close.    But people are sheep and can only see what everyone else sees.

[SONOFFERGUS]

Sigh. I was going to write an essay but pointless. GIC in margin is stupid in all circumstances.  GIC is smart in TFSA if that money is a rainy-day fund.  Risky stuff is smart in TFSA if you don't need the money for a long time and have de-risked your other portfolios accordingly. BPO in TFSA is brilliant if it goes up fast -- quick capital gain with no tax bill.  BPO in TFSA

[CrazyTrader]

Sigh...  Just sell all your shares then and buy GICs.  NO?  why?   You are risk diversified.   but where to hold what where. Yes, i'm expecting significant capital gains on top of the crazy dividend yields..... so ya, it's "brilliant" to put BPO in TFSA.     I think most of us are sitting on significant capital gains now. Look,

[pierrelebel]

"Look, you have GICs, You have BPO. ..." You are missing the point entirely.  It is not one or the other.  We have diversified portfolios holding 27 different issues, mostly high yielding stocks such as BPO.PR.T, ECN.PR.E, BRE, BCE, DIV, RE, SPB, GXE, etc... Our TFSAs hold mostly REITs and other high yield trust units such as AD.UN and convertible debentures.  GICs are

[CrazyTrader]

Pierre, no wonder your TFSA is suffering.... You're holding AD.UN in it. Do you even pay attention to share price???? or is dividends and dividend tax credits all you care about? Yikes!!! Just take a look at 10 year chart of AD.UN.  $30 down to $15.75.      

[pierrelebel]

"10 year chart of AD.UN.  $30 down to $15.75.      " Again you do NOT know what you are talking about.  We purchased AD.UN three years ago (April 8th 2021) at a price of $15.87 in one of our TFSA account.  The yield is steady at about 8%/9%. It does not pay a dividend but a distribution, without any dividend tax credit.