Brookfield Office Properties Inc T.BPO.PR.I

BPO is HIGH Yielding and you're going to have Capital Gains

[CrazyTrader]

Huge Capital Gains.      TFSA pays no tax.     

GICs are low yielding and no capital gains.     

It's a no brainer where to hold what where to pay less tax.    It's a no brainer for people who aren't sheep or clowns.

[pierrelebel]

You clearly do not understand tax tables. Let's say you have 10,000 shares earning $1.70 yearly in dividends for total of $17,000 You would pay about $1530 in taxes, keeping $15,470 after tax. If these shares had a cost of $12 and the money had been invested in GIC at 5% ($120,000 x 5%) it would have earned $6,000 You would pay about $1860 in taxes, keeping $4,140 after tax. Basically

[CrazyTrader]

OH ya... you saved $1860 - $1530 = $330.   $330 in taxes saved only.  Meanwhile, you sitting on capital gain of almost $120,000 which going to be taxed, and you gave up doubling your TFSA .....   all for saving $330/year. Bravo.

[pierrelebel]

"you sitting on capital gain of almost $120,000" I know your posting name is "crazy" but, really, do you have to prove it? Where could you possibly have come to this conclusion.  I have been very open with our purchases of BPO.PR.T, now totalling 10,800 shares at an average price of about $12 which would generate a paper profit of about $30,000 if sold today, not $120

[wynner]

Good work guys. I am enjoying the discussion on "rich people" problems. I have a slightly different case for you. I have capital losses (still) from the income trust days. So capital gains tax in my cash/margin account is moot . (For now). I have growth funds (as mentioned before) in my TFSA and RRSP. I started a RRIF in another account recently and split the income with my spouse. It

[SONOFFERGUS]

Hey wynner. I use "margin" to describe taxable trading accounts generally.  Not keen on paying big rates or using leverage expect for timing differences. If I'm hanging around for a dividend or a price move, I can rationalize paying 8% deducted at 53% for 10% dividends taxed at 39%.   Ouch on the income trusts. BPO sets up perfectly for you to monetize those losses.

[wynner]

Oh yes. I forgot about the deduction . Same with all the trading costs. I do use the margin occasionaly. I got burned on the "income trusts" after doing very well in them. I learned. You can probably guess who I will NEVER vote for ever again. Not that there is any reason to.