Anna would like to purchase $50,000 of dividend paying common shares in various Canadian public corporations. Anna
Question:
Anna would like to purchase $50,000 of dividend paying common shares in various Canadian public corporations. Anna is considering whether she should acquire the stock portfolio personally or via her RRSP. She believes the stock portfolio will significantly appreciate in value in the near future. Anna plans to sell the stock portfolio in 5 years for reinvestment into Canadian mutual funds.What are the tax disadvantages of acquiring the shares personally, as opposed to purchasing the shares through her RRSP? Explain. Hint: first, consider personal tax implications of each investment alternative and then compare tax results
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta