Well then Mr. Smarty Pants 👖
Do tell how the taxation of dividends from eligible Canadian Dividend Paying Corporations work for Canadian Tax Payers. After all I’m a total neophyte having ONLY done it for half a century 😉
Interest Rates
- Thread starter Kissmepassionately
- Start date
Do tell how the taxation of dividends from eligible Canadian Dividend Paying Corporations work for Canadian Tax Payers. After all I’m a total neophyte having ONLY done it for half a century 😉
You gross up the eligible divs and a corresponding div tax credit is applied to your tax rate on the grossed up amount and on balance, the effect is that the ACTUAL RATE of tax (due to the gross up and tax credit) is lower than the tax rate on regular income such as employment income or interest income. So, eligible divs have a "tax advantage" because they are generally taxed at a lower rate than normal income. Now, can eligible divs have a zero tax rate - sure they can. As an example, if you hold div paying Canadian stocks in a TFSA - those divs would be earned tax free.
https://www.canada.ca/en/revenue-ag...n-eligible-taxable-canadian-corporations.html
If you truly have been doing this for half a century, you should know this like the back of your hand!
Thanks 🙏🏻…! ! ! Great 😊 effort 🙇🏻♂️
Let’s agree on this: Mr. Smarty Pants 👖 puts his money 💵 in a Five Year GIC yielding 4.60%; RalphiEboy places his money 💵 in Great-West Lifeco paying a 6.42% dividend eligible for the dividend tax-credit. Each of our protagonists have a marginal income tax rate of 54.50%. At the end of each year, for five years, RalpiEBoy has more after income tax income to buy blowjobs. Also RalpiEBoy has a reasonable expectation to make 50% or so Capital Gain on his GWO Common Shares… 🤓
By the way Mr. Smarty Pants 👖 I’m a securities trader, not a CPA, so I leave the heavy lifting to The CPAs👩💼 to file income tax returns. I typically earn $500.00 an hour trading and then pay a CPA 🧑💼 $150.00 a hour to figure out The CRA Minutiae.
Works fer me mon ami 😇
Works fer me mon ami 😇
None of that is really relevant when it comes to you posting US tax rates and passing them off as what a Canadian would pay in Canada, now does it? My goodness. You can't just let it go can you? Instead you double down by making some silly comment about half a century of dividend investing - which basically shows that for half a century you walked around without a clue as to how those divs are taxed. Now that's fine and dandy, living without knowing anything about something is one thing - but then posting your complete lack of knowledge on the subject matter (i.e. how divs are actually taxed in Canada) is a completely different thing. What's hilarious is that your little "over half a century" comment is some weak attempt at making some argument/making a point from a position of authority. Hate to break it to you, if you've been completely wrong for over half a century about your own understanding of how divs are taxed in this county - that does NOT put you in a position of authority to make an argument (it merely further demonstrates your ignorance on the subject matter at hand).
Please check your private message. There’s a treat there fer ya Mr. Smarty Pants 👖
The Canadian Banks 🏦 look interesting 🤨 here along with Sun ☀ Life. Great-West Lifeco mentioned earlier…
We quickly went from interest rates rising, to how badly horgan and trudy screw us by over taxing.
Well..we’re all REALLY here ‘cause it’s ALL about screwin’, right…?!?
🤠
Thanks!
I have 19 stocks in total, diversification is good for me, as I don't want all my eggs in 1 basket as they say. Also have some mutual funds with Phillip Hager North, and for short term accessibility gics.
Very nice 👍🏻
We have +/- 30 stocks presently*
Holdings with Fidelity Investments Canada 🍁
Premium Savings Account for liquidity
*their Average Annual Compound Rate of Return or AACROR is +/- 10% per year over the long haul with cash 💵 on cash 💵 dividends of 3.00% or more with low dividend payout ratios and historical annual dividend rate increases greater than average annual increases in inflation 🌟
2 example of Energy holding I picked up was Vermillion Energy ( VET.TO --- I love Vermillion energy! ) which is on the TSX. Very proud of this one as I picked it up on Dec / 2020 @ about $7 a share , give or take. Made a wicked return and sold half my position @ $15 and change......then with the profit I Bought PPL.TO ( Pembina pipeline ) towards end of January 2022 -- $38 ish a share. I still hold both of these stocks and plan on doing so for some time to come... as well as others. This is just a brief example. I love PPL monthly dividend! That deposit is nice and cash accumulation. Or, whatever I choose to do with that.
As I said in this thread. Certain, financials are my focus now.
As I said in this thread. Certain, financials are my focus now.
Last edited:
