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Originally Posted by banalanal
Slightly off-topic but quick Canadian tax questions given the quality of tax related knowledge here.
I have a portfolio of Canadian stocks, U.S. stocks and some international ETFs. It's my first year having a wide portfolio and filing them in my tax return. I assume I claim dividends received and capital gains (if I sold and profited from that transaction).
1. How much dividend percentage will I actually keep after Cdn taxes, and after U.S. taxes, of an equity, supposing it is paying a 4% dividend?
2. Should I keep U.S. or Cdn equities in my TFSA?
3. Any other general tips to making sure my tax season is most efficient and getting the highest returns regarding Cdn, and U.S. dividend stocks?
Thanks for any help.
On dividends: Take what you earn, multiply it by 1.25, then deduct 13% to get the taxable amount of the dividend. Then you need to multiply by your marginal tax rate which could be up to about 43%.
Assuming you have an RRSP, you probably want to keep high potential growth stocks in your TFSA and other income in the RRSP.