TSX:TNT.UN - Post by User
Comment by
bcscon Apr 22, 2022 11:19am
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Post# 34623775
RE:RE:RE:RE:RE:RE:RE:RE:RE:Is this a value stock?
RE:RE:RE:RE:RE:RE:RE:RE:RE:Is this a value stock?ROC is not tax free. The income tax is deferred to the year in which the security is sold since the ROC reduces the adjusted cost base, increasing the capital gain. There is no guarantee that the current or future governments will keep the capital gains inclusion rate at 50%.
Holding this in an RSP results in the capital gain being 100% taxed as income upon withdrawl.
felix10 wrote: Actually, it's not very smart putting this REIT in a TFSA. ROC was 100% the last few years which means you're sheltering income which was already tax free. That doesn't make much sense since it would be tax free anyway in a regular, non-registered, non-sheltered account.
What you should hold in a TFSA (or RRSP) are stocks that WOULD be taxed if they weren't in a sheltered account. Or stocks that have a potential for large capital gains which is unlikely with most REITS.