Cardinal Energy Ltd (Alberta) T.CJ

More TFSA money

[Luckyguy777]

I just made mine and spouse's TFSA depostis.  Certiainly at 14k it s small but I am not sure there is a better place to put that money than CJ.  I keep tellling myself I should sell some of the taxable shares to offset some risk but have no reason to sell.. 

Anyone here think otherwise?  If I did sell taxable shares, I have to pay tax and get less dividends..  When you have a bunch at a  low cost what should a person do?

[Valneigette]

You did it right of course you could sell to offset a capital loss. The only problem I see is a take over offer and your taxable account will be at risk

[Pottsy]

Make sure you understand the rules around shares in TFSA, if you plan to trade in that account you could be at risk of tax and penalties. 

[lashing]

I've actively traded in my TFSA since inception. And I've been audited. THere is no rule about trading via TFSA. I have heard of people being harrassed but you just file in tax court and Rev Can will drop it because its all opinion about that is "business income" if they think you trade to much and not law. Tax Court would rule in your favor. Thus Rev Can will withdraw before

[loopsbutterfly]

The point is about the 50% rule for capital gain or loss.... if Revenue Canada find you trade too much in your TFSA and consider you as a day trader they will not agree for the 50% rule and you could become fully taxable and I know some investors catched on that rule... example: capital gain  $14 000 x 50%=$7000 taxable at your bracket          day trader: capital

[Quintessential1]

Hey loops you were right !  It is not the same thing at all !  Far less profit....for you! You can't avoid paying the full 100% marginal tax rate on all of your gains in your RRSP loops. The TFSA investors have a very good chance of paying no tax.  Very very good loops LOL Thanks for reminding me of the date so I could repost it...LOL Or should I say...gracias grinDR PMSL

[Pandora]

You possibly should have transferred the shares from your margin account to your TFSA (or your RRSP if you have room). It is still a "deemed" sale thus taxable but puts them in a tax free zone. Future withdrawals from the RRSP(RIF) will be taxable though. Moving them to your TFSA is the preferred option although still taxable as a "deemed" sale. And then buying additional in

[Luckyguy777]

I already have 37,000 shares in TFSA and another 15,000 in RRSP with no additional contribution room.  Every month I get the dividends and just buy more CJ. Certainly the tax on the margin account is inevitable but unless there is something better to buy why bother triggering it.  If the tax is triggered I instantly need a higher yield to be whole as after paying the tax I would have

[Pandora]

Ok, sorry about that. You are definitely a way out of my class. I have to assume you also have no capital losses available either, to offset the gains. Carry on, you seem to be doing just fine. Paying a little tax at some point should not be a problem based on what you say about your holdings. You know tax is one of those two things that they say are inevitable or that you can be sure of.

[Luckyguy777]

Well of course I have positions that are in losses.  Nothing major and I dont have a desire to sell any of those.  BTE would be one, TVE another.  I will ride those out.  CPG I started buying somewhere in the high $40 mark.  I am now in the money on that one.  Hold on  people.  Follow the cash flow.  

[JayBanks]

Anouther nice thing about Cardinal in a margin account is its Marginable... so you get about 70% of your value as usable cash which you can redeploy and pay the interest on (currently I pay 8.75%)... but I could by more Cardinal and receive the approx 2.25% dividend to margin cost on the bank's money... + the hopeful upside to the Share Price eventually... (that spread will widen substantially

[loopsbutterfly]

alll my shares are fully paid and I have no margin account.(37 900 shares) Some investors said they have big holding but in fact they hold on margin.  

[JayBanks]

  Use of margin or not we still control the shares the same as you do... so step off your high horse! Margin gets a bad rap, but it's only a liquid, secured line of credit on your portfolio that doesn't have a repayment schedule, rather than securing a loan/line of credit against a house/property, car or whatever else. It's arguably better because the bank has less control

[loopsbutterfly]

sorry it is not the same thing at all !!! 1-You have to pay interest 2-You can get a margin call me I can enjoy my full dividend without paying interest and no margin call no matter the stock go down so I can sleep at night quite well !!!

[JayBanks]

  1 - So what I have to pay interest? It is a lending tool like all others, the companies you own pay interest on thier borrowing costs, those costs are also your costs on the balance sheet, you just don't have them attached to you personally. If you have a mortgage, a car loan, or a line of credit/credit card with a balance and while investing, your paying interest somewhere that could

[loopsbutterfly]

My point is 1-I have no margin call 2-my dividend is interest free......I dont borrow the shares all my shares are fully pay without the risk of a margin call you could own the best stock in town....you never know what could happen when you play the stock market

[loopsbutterfly]

I dont know how old are you but I am 57 years old and I was there in 1987 (market crash) and I know margin account is risky no matter what you say...the leverage is good when the stock go up but it can turn very badly when the stock take the other direction.... It was one of the top reason for the 1987 crash which has been amplified especially because of the margin call and stop loss selling I

[loopsbutterfly]

december 9 ,2023 you said you hold 8 000 shares and you also said it is by far your largest position...