Performance figures for each account are calculated using time weighted rate of returns on a daily basis. The Composite returns are calculated based on the asset-weighted monthly composite constituents based on beginning of month asset mix and include the reinvestment of all earnings as of the payment date. Composite returns are as follows:

John Nicola Answers Your Tax Questions: Capital Gains Tax and Nicola Wealth LPs


Watch Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s Taxation Environment here.

In his webinar on November 2, 2021, CEO & Chairman, John Nicola, provided exclusive insight into Canada’s taxation environment and explained how to optimize your tax planning strategy in light of current regulations and took the time to answer viewer questions. Each week, we will publish his answers to your questions.

 

With a likely increase in capital gains inclusion rate in the near term, the 6-month notice period to sell Nicola Wealth Limited Partnerships with latent gains could cause the investor to miss the tax increase avoidance. Would Nicola Wealth consider facilitating the immediate tax realization on latent gains by allowing the investor to both sell and immediately re-purchase the limited partnership units to avoid the 6-month delay?

 

John’s Response:

I suppose a structure like that could be established, but there are two things to consider. First, I and many others are not at all sure that the capital gains tax rates will rise. Secondly, the number of people in the queue to redeem units is very small. Lastly, if I want to trigger the capital gains for LP units I can simply sell them at market to a related entity. For example, I could sell units in the real estate LP I own to my company or spouse at market price and intentionally trigger the capital gains on those units

This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.