Incitec Pivot Ltd T.IPL

RE:RE:RE:Premium Dividend - Taxes?

[mrbb]

Also, capital gain deduction at 1/2 of gross capital gain get wasted inside rrsp and tfsa accounts.

 

 

SargeX wrote: Actually, I just saw a note about receiving Jan div on Feb 14th so I looked at my activity report with RBC DI and in my wife and my non-reg accounts, the payments were $513,00 and $103.31 in divs and $5.15 and $1.04 in premium dist (which is what gets reported as "other income"). That's the 1%. Until now, I never really checked where the "other income" was coming from. Now I know. I'm also surprised that I get this as we always take out dividends in cash and never DRIP (Being retirees living off dividend income).

I also saw a note on putting it in a TFSA/RRSP instead of a non-reg account and for us, it is way better to be in a non-reg account so we get the dividend credit. Any dividends paid in an RRSP will eventually be withdrawn as income and taxed at the way higher rate.

Ciao
  Sarge

 

SargeX wrote: Hey Johnny

I haven't seen my 2019 slip but in 2018, IPL was almost all eligible Cdn Divs. In fact, it was exactly 99% divs and 1% other income.

Ciao
  Sarge

JohnSP wrote: I hold IPL.TO in both TD-DI & RBC-DI accounts.

Interestingly, TD says the 1% Premium is a tax efficient "Dividend" for tax purposes, whereas RBC says it is high tax "Other Income" on my T5.

OK not a lot of money extra taxes for Other Income, but still . . . . which is it?