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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: scouser who wrote (77)	3/5/2000 12:34:00 PM
From: mappingworld	Read Replies (1) \| Respond to of 548

So say you have $100,000 in your account 100% in nasdaq stocks and none of them canadian, the 1% penalty a month would be 1% of $80,000? Olga <<<The % foreign content rule. This one is not very well known, you can have 20% foreign content in your RRSP , that is common knowledge, but most people do not know you can have 100% foreign content by paying a 1% penalty per month on the amount over 20%, you do not need permission or anything special, your broker will add the penalty each month automatically. So if your RRSP was 100% foreign for the whole year you would pay 12% of 80% = 9.6% penalty on the total value as a penalty. The value of the stock will change each day so the $ penalty will also change, but your broker does that calc.>>>

To: scouser who wrote (77)	3/5/2000 1:21:00 PM
From: Jim Bishop	Respond to of 548

Thanks John, printing that out, and faxing it to buddybillythebroker.

To: scouser who wrote (77)	3/5/2000 1:32:00 PM
From: les jarosz	Read Replies (2) \| Respond to of 548

The % foreign content rule and 1% penalty What if you invested 50% of your rrsp in a foreign stock and sold it before month end. The statement does not show any foreign content for the month. Does your broker have to charge the penalty?

To: scouser who wrote (77)	3/5/2000 1:34:00 PM
From: bwtidal	Read Replies (1) \| Respond to of 548

re: "they have a legal fiduciary duty to know and advise you" no, they do not. in fact, regards fiduciary "duty", one could argue that advising someone to invest in something that would incur 12% per annum penalty charges would be a breach of fiduciary duty. not to say these aren't useful strategies, nor that brokers shouldn't be aware of the rules, and perhaps even inform you of these alternatives, but it is not a fiduciary or legal requirement.

To: scouser who wrote (77)	3/6/2000 12:16:00 AM
From: Chad Barrett	Read Replies (1) \| Respond to of 548

scouser, Am I correct in interpretting what you said to mean that stock can be swapped from a normal trading account to an RRSP account whenever you wish? .... and that this swap does not change the amount you have contributed to the RRSP in total? (assuming the dollar values of the swapped stocks are equal) ?? If so, that is an amazing piece of information for us all to know!!

To: scouser who wrote (77)	11/8/2000 9:26:19 AM
From: Jordan Levitt	Read Replies (2) \| Respond to of 548

<<The % foreign content rule. This one is not very well known, you can have 20% foreign content in your RRSP , that is common knowledge, but most people do not know you can have 100% foreign content by paying a 1% penalty per month on the amount over 20%, you do not need permission or anything special, your broker will add the penalty each month automatically. So if your RRSP was 100% foreign for the whole year you would pay 12% of 80% = 9.6% penalty on the total value as a penalty. The value of the stock will change each day so the $ penalty will also change, but your broker does that calc.>> First: You are allowed 25% Second: all calculations are based on book (or purchase values. So the penalty amount will not fluctuate ! You can also use this to your advantage. Say the portfolio has increased. You can sell the CDN. holdings, then buy them back the next day, effectively increasing the book value of the CDN holdings. If you hold the US holdings, they remain at the original book value. The net result is that you have reduced the relative weight of your foreign holdings, thus reducing the penalty. good luck