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Graham Westmacott CFA

Portfolio Manager

Susan Daley CFA

Associate Portfolio Manager
Contact
  • T519.880.0888
  • 1.877.517.0888
  • F519.880.9997
  • The Marsland Centre
  • 20 Erb St. W,
    Suite 506
  • Waterloo, Ontario N2L 1T2

The Taxation of Investment Returns

December 6, 2017 - 0 comments

When investing your money for the long-term, it is important to focus on things you can control. One of the items you can control is the amount of tax you pay on your investments. I outline how TFSA and RRSP accounts are taxed in their respective videos: What is a TFSA? and Rethinking Registered Retirement Savings Plans (RRSP’s). In today’s video I outline how investments are taxed personally, when you can no longer use these tax sheltered accounts. Investment returns are taxed based on the source of income. For a refresher on the sources of investment returns within a portfolio, check out my videos: Investing in Bonds: How Do I Make Money Buying Bonds? and Investing in Stocks: Earning a Return on Equities. In summary, interest and foreign dividends are taxed at your marginal tax rate, Canadian dividends are based on a gross-up and tax credit mechanism, and capital gains are taxed at half your marginal rate. Check out my video below to dive deeper into the mechanics of how this all works.

 

By: Susan Daley with 0 comments.
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