RE:RE:RE:ENB back to where I sold them at 54- 54.50 Pre Div -X dateNo problem. Original post was about selling before ex-div date or take the dividend.
May I suggest you check with your broker whether your grandkids can have their investment / TFSA / RRSP accounts. If yes, the tax will be much lower and no transfer when they grow up. All my kids had their bank account and investment account as soon as I got their SIN when they were a few months old. I bought dividend stock under their account. The dividend was their candy money.
The idea came from TD and Royal Bank. Not sure if the rules changed. But you have to file their tax return.
SargeX wrote: Hey CK
I have quite a few people on ignore so not sure who this is a response to and what it's all about.
To clarify, we hold the dough for the grandkids in separate non-reg accounts that are in our names. Therefore, we are paying the taxes on the accounts to keep things simple. In our case, we live in Alberta and our net incomes are both in the second tax bracket so our marginal rate on dividends is 10.16%. (so better than the 15.25% on capital gains).
Ciao
Sarge
ckwong wrote: It is also depending on your tax bracket whether the dividend credit can give you better advantage or the capital gain. For SargeX's grandchildern, if their net worth is low, they may not pay a penny of tax if all incomes are dividend and less than C$60K.The threshold could be wrong but you get the idea.