When you need tax advice, business associates and friends can be a valuable source of ideas and referrals. However, non-professionals can be mistaken or out of date in their tax knowledge, no matter how confident they seem.

This is also true of some semi-professionals—tax preparers, bookkeepers, insurance agents and so on. Court rulings or tax-department crackdowns can close tax loopholes. People sometimes get away with borderline tax maneuvers for lengthy periods, only because the tax authorities never take a close look at their affairs. But the more money you have, the more likely it is that your affairs will one day get a close look from someone at the tax department.

Then too, some maneuvers work for some taxpayers but not others, mainly because of differing circumstances.

Making an adult child co-owner of your home can have hidden capital gains tax consequences

Widowed investors sometimes try to avoid probate fees by placing an adult child on as co-owner of their homes or stock portfolios. I’m not qualified to advise anybody to go ahead and follow this plan. However, I don’t mind pointing out when I see potential pitfalls.

For one, if you have capital gains on your portfolio, you are only liable for capital gains taxes when you sell. But if you put your son or daughter on as a co-owner, the Canada Revenue Agency could interpret that as a “deemed disposition” —the sale, in other words—of half the portfolio. That would leave you liable for capital gains tax this year, rather than deferring those gains until you sell or die.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

When you die, you are deemed to have disposed of or sold your entire portfolio. But no matter how old you are, that day can still be years in the future. It’s a waste to pay capital gains tax any sooner than you have to. Worse, your stocks may have gone down by the time you die. The gain on which you’ve already paid taxes may have evaporated!

You won’t have this exact problem if you put an adult child on as co-owner of your home, since capital gains on your principal residence are tax-exempt. But each of us can only have one principal-residence capital-gains-tax exemption. If your adult child already owns a home, then any gains he or she makes on your home, after becoming joint owner, will be taxable.

In this case, putting your adult child on as co-owner of your home could convert some tax-free capital gains (in your hands) into taxable capital gains (in your child’s hands). This is likely to outweigh anything you gain by avoiding probate.

Another complication to consider: what happens if the child dies before you do? In that case, did you want to leave half your home or stock portfolio to your child’s spouse (or live-in girlfriend/boyfriend)?

Fees are just one consideration when looking for professional tax advice

Putting an adult child on as a co-owner of your property may have some tax benefits. But you need professional advice to see if it will work for you. A professional may also know of a better way (such as using corporations or trusts) to achieve your goals.

To get good tax advice at a reasonable price, you need to shop around, ask questions and check references, just as you would if you want to buy a new furnace or put an addition on your home. Just remember, good advice doesn’t come cheap. Trying to avoid the cost of good tax advice altogether can be an extremely expensive way to handle your finances.

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this free report, click here to download your copy today. I’d also encourage you to share the report with a friend. It’s my “thank you” just for signing up for my free daily updates.

(Our free report, “Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities,” contains simple strategies you can use to shift more of your income to capital gains. Click here to download yours and get started right away.)

You have to pay capital gains tax on profit you make from the sale of an asset. An asset can be a security, such as a stock or a bond, or a fixed asset, such as land, buildings, equipment or other possessions. However, you only pay capital gains tax on a portion of your profit. The “capital gains inclusion rate” determines the size of this portion.

Several years ago, the Canadian government cut the capital gains inclusion rate from 75% to 50%. This cut taxes on capital gains by one-third, and had the effect of lowering the overall rate you pay on capital gains to one-half of what you would pay on income or interest.

Here’s how tax on capital gains compares to other forms of investment income:

• Capital gains: If you buy stock for $2,000 and then sell that stock for $4,000, you have a $2,000 capital gain (not including brokerage commissions). You would pay tax on 50% of the capital gain amount. This means that if you earn $2,000 in capital gains, and you are in the highest tax bracket in, say, Ontario (46.41%), you will pay $464.10 in capital gains tax on the $2,000 in gains.
• Interest: Unlike capital gains, interest income is fully taxable. In the 46.41% tax bracket, you’d pay $928.20 in taxes on $2,000 in interest income.
• Dividends: The dividend tax credit applies to all dividend income from Canadian corporations. As a result, you would pay $461.20 on $2,000 in Canadian dividend income.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

You control when you pay tax on capital gains

One of the main advantages capital gains have over other forms of investment income is that you control when you pay tax on capital gains. This amounts to a very simple and highly effective way of deferring tax — and it’s perfectly legal.

You pay capital gains tax on a stock only when you sell, or “realize” the increase in the value of the stock over and above what you paid for it. In contrast, interest and dividend income are taxed in the year in which they are earned.

As an added bonus, if you sell after you retire, you may be in a lower tax bracket than you are when you are earlier in your investing career. In any event, the longer you hold onto a profitable stock and put off paying tax on capital gains, the longer all of your money works for you.

This can have a significant impact on your long-term returns. To continue with the example above, if you buy stock for $2,000 and then sell that stock for $4,000, you will pay $464.10 in tax on your capital gains. That would leave you with $3,535.90 to reinvest (not including brokerage commissions).

However, if you hang onto the stock, you keep the full $4,000 working for you until you choose to sell. That holds out the potential for even further gains, and the possibility of paying less tax on your capital gains if you sell after you retire, when you may be in a lower tax bracket.

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this new free report, click here to download your copy today.

This is also true of some semi-professionals—tax preparers, bookkeepers, insurance agents and so on. Court rulings or tax-department crackdowns can close tax loopholes. People sometimes get away with borderline tax maneuvers for lengthy periods, only because the tax authorities never take a close look at their affairs. But the more money you have, the more likely it is that your affairs will one day get a close look from someone at the tax department.

Then too, some maneuvers work for some taxpayers but not others, mainly because of differing circumstances.

Making a child co-owner of your home can have hidden Canadian capital gains tax consequences

Widowed investors sometimes try to avoid probate fees by placing an adult child on as co-owner of their homes or stock portfolios. I’m not qualified to advise anybody to go ahead and follow this plan. However, I don’t mind pointing out when I see potential pitfalls.

For one, if you have capital gains on your portfolio, you are only liable for capital gains taxes when you sell. But if you put your son or daughter on as a co-owner, the Canada Revenue Agency could interpret that as a “deemed disposition” —the sale, in other words—of half the portfolio. That would leave you liable for Canadian capital gains tax this year, rather than deferring those gains until you sell or die.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

When you die, you are deemed to have disposed of or sold your entire portfolio. But no matter how old you are, that day can still be years in the future. It’s a waste to pay Canadian capital gains tax any sooner than you have to. Worse, your stocks may have gone down by the time you die. The gain on which you’ve already paid taxes may have evaporated!

You won’t have this exact problem if you put an adult child on as co-owner of your home, since capital gains on your principal residence are tax-exempt. But each of us can only have one principal-residence capital-gains-tax exemption. If your adult child already owns a home, then any gains he or she makes on your home, after becoming joint owner, will be taxable.

In this case, putting your adult child on as co-owner of your home could convert some tax-free capital gains (in your hands) into taxable capital gains (in your child’s hands). This is likely to outweigh anything you gain by avoiding probate.

Another complication to consider: what happens if the child dies before you do? In that case, did you want to leave half your home or stock portfolio to your child’s spouse (or live-in girlfriend/boyfriend)?

Look beyond fees when looking for professional tax advice

Putting an adult child on as a co-owner of your property may have some tax benefits. But you need professional advice to see if it will work for you. A professional may also know of a better way (such as using corporations or trusts) to achieve your goals.

To get good tax advice at a reasonable price, you need to shop around, ask questions and check references, just as you would if you want to buy a new furnace or put an addition on your home. Just remember, good advice doesn’t come cheap. Trying to avoid the cost of good tax advice altogether can be an extremely expensive way to handle your finances.

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this free report, click here to download your copy today.

In our new special report, “Tax-Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year,” you learn about 7 companies that have the potential to skyrocket in early 2011. Click here to download your free copy of this new report right away.

One of these firms is Aastra Technologies (symbol AAH on Toronto). The company’s shares are down 37.9% from their 2010 high of $36.99.

Aastra develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems, and includes products that integrate traditional and mobile phones.

The company’s shares are down on lower sales and earnings in the latest quarter, although it was the company’s 50th consecutive quarterly profit. Aastra gets 77% of its sales from Europe. The weaker European economy has hurt demand for the company’s products, and forced it to cut its prices. As well, the year-earlier quarter was unusually strong.

Aastra holds cash of $116.9 million, or $8.41 a share, and has no long-term debt. The shares yield a high 4.2%.

The company will need a sustained European economic recovery before it reports rising sales and earnings. Still, the stock trades at just 10.5 times the $1.80 a share that Aastra is forecast to earn next year.

Aastra is a tax-loss selling buy.

Tomorrow, December 28, 2010, we’ll feature another buy from our new free Christmas stocks report.

As a member of TSI Network, you may have already seen “Tax-Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year,” If you haven’t yet read this new free report, click here to download your copy today.

Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.

Toward year-end, it occurs to these investors that they’ll have to pay taxes on their capital gains, regardless of whether they made money overall. This leads some investors to dump their losers near year-end, simply to establish a capital loss for tax purposes, to offset a capital gain.

That can create great stock-market bargains, because it puts temporary downward pressure on prices of stocks that have been weak during the year. But the best of the bunch can put on extraordinary recoveries after tax-loss selling season ends on December 24. If you know how to spot these fast-moving stocks, you could put yourself in position for big gains.

That’s why I’ve written my new free report, Tax Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year. Click here to download your copy right away.

Learn which 7 stocks have strong potential to soar after tax-loss selling season ends in Pat McKeough’s new free report, “Tax-Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year.” In this exclusive report, Pat gives you his in-depth analysis of all 7 of these high-quality stocks. Don’t miss out! Click here to download yours today.

In this new report, you get my full analysis of all 7 of these companies. What’s more, these stocks are much more than simple “one-hit wonders.” All are well-established companies that are leaders in their industries. That cuts your risk.

Along with my full analysis of these stocks, you’ll also get full details on how tax-loss selling works, and how it has the potential to create stock-market bargains that will skyrocket in early 2011.

And best of all, this exclusive report is yours FREE as my “thank you” for signing up for my free daily updates on TSI Network.

Tax Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year is the latest in a series of free reports I’ve written as free downloads on TSI Network. I wrote my last report, “Stock Market Investing Strategy: Pat McKeough’s Conservative Investing Guide to Making Money & Cutting Risk,” to help investors cut their portfolio’s volatility — and earn higher stock market profits — in today’s volatile markets.

To get started right away, click here to download your copy of Tax Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year.

For example, December 24 is the 2010 deadline for tax-loss selling on the Toronto Stock Exchange. If you sell at a loss on or before that date, you get to deduct your loss against your 2010 capital gains.

If you still have capital losses left over, you can carry them back up to three years (2009, 2008 and 2007), or forward indefinitely to offset past or future capital gains.

Overlooking the “superficial loss rule” will cause your capital loss to be disallowed

If you are considering using tax-loss selling to minimize capital gains, you should be aware of the “superficial loss rule.” The rule states that if you, your spouse or a company you control buys the same security within 30 days before or after the sale, you are not permitted to claim the capital loss for tax purposes.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

However, there are some ways to maintain stock-market exposure during the 30-day period following the sale. For example, if you decide to sell oil and gas shares that you bought at their 2008 highs in order to realize a capital loss, but then decide oil and gas stocks are poised to rise further, you can buy a mutual fund that is heavily weighted in oil and gas firms to keep yourself exposed to that sector.

Or you could buy shares in a company that is in a similar business as the one you sold. For instance, say you bought Suncor Energy (symbol SU on Toronto) for $60 in 2008 and sold it for $35 in 2010, then bought shares of Cenovus Energy (symbol CVE on Toronto) within 30 days of selling Suncor. You wouldn’t trigger the superficial loss rule, even though the companies have a great deal of similarity in the businesses they are in. (We cover both Suncor and Cenovus in our Successful Investor newsletter.)

Look beyond Canadian capital gains tax when deciding when to sell

It’s always a good time to sell bad stocks, or stocks that are wrong for your portfolio. But you need to balance that rule against the fact that in the final couple of months of the year, some investors dump stocks without thinking, just to cut their taxes. In some cases, they simply want to sell and be done with it. In others, they intend to buy back the stock after 30 days (but as we mentioned, if you buy back any sooner, you cannot deduct your loss.)

As a result, stocks that have been weak tend to stay weak in the final month or two of the year. But the best of the bunch can put on extraordinary recoveries when tax-loss selling season ends.

Our investment advice: don’t let tax considerations spur you to make a costly mistake. You can always sell next year and carry your loss back.

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this free report, click here to download your copy today.

(We take a close look at how to use your RRSP to maximize your tax savings in our new FREE report, “Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities.” Click here to download your copy and get started right away.)

Holding speculative stocks in your RRSP can increase your capital gains tax

One key rule is that it’s best to hold speculative investments outside your RRSP. Losses are inevitable with speculative investments. If you hold them outside your RRSP, losses provide you with tax-deductible capital losses that can reduce your payable capital gains tax. Inside your RRSP, losses simply reduce the capital you have available to take advantage of an RRSP’s tax-deferral power.

It’s especially crucial to observe this rule when you’re young. Your RRSP’s tax-deferral power continues until you take all the money out, and by then you may be in your 90s. A capital loss in your RRSP deprives you of this benefit, which is the most valuable part of an RRSP.

There is something to be said for holding interest-paying investments and foreign stocks in your RRSP, and Canadian stocks outside of it. That’s because dividend income from Canadian stocks is eligible for the dividend tax credit, where interest income and foreign dividends get taxed as ordinary income.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

High-quality stocks beat bonds as RRSP investments

Some financial planners say that stocks are too speculative to hold in an RRSP, because of the risk. That view made sense a decade or two ago, when interest rates were two or more times higher than they are today.

Now the situation has reversed. With interest rates now at historic lows, bonds can’t go a lot higher than they are. In fact, it seems more likely that rates will hold steady or rise slightly in the short term, and move higher still in the long run. That means bond investors would only earn interest income on their bonds; instead of capital gains, their bond holdings could produce capital losses.

In our view, that combination of high bond prices and the risk of higher inflation makes even the highest-quality bond portfolio more speculative than a well-designed stock portfolio. That is, a stock portfolio that’s built according to our three-part investment strategy: invest mainly in well-established companies, downplay stocks that are in the broker/public-relations limelight and spread your money across the five main economic sectors (Manufacturing & Industry; Resources; Consumer; Finance; and Utilities).

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this new free report, click here to download your copy today. I’d also encourage you to share the report with a friend. It’s my “thank you” just for signing up for my free daily updates.

(Our new free report, “Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities,” is packed with simple strategies you can use to shift more of your income to capital gains. Click here to download yours and get started right away.)

You have to pay capital gains tax on profit you make from the sale of an asset. An asset can be a security, such as a stock or a bond, or a fixed asset, such as land, buildings, equipment or other possessions. However, you only pay the tax on a portion of your profit. The “capital gains inclusion rate” determines the size of this portion.

Several years ago, the Canadian government cut the capital gains inclusion rate from 75% to 50%. This cut taxes on capital gains by one-third, and had the effect of lowering the overall rate you pay on capital gains to one-half of what you would pay on income or interest.

By the numbers: tax on capital gains

For example, if you buy stock for $1,000 and then sell that stock for $2,000, you have a $1,000 capital gain (not including brokerage commissions). You would pay capital gains tax on 50% of the capital gain amount. This means that if you earn $1,000 in capital gains, and you are in the highest tax bracket in, say, Ontario (46.41%), you will pay $232.05 in capital gains tax on the $1,000 in gains.

In contrast, interest income is fully taxable, while dividend income is eligible for a dividend tax credit in Canada. In the 46.41% tax bracket, you’d pay $464.10 in taxes on $1,000 in interest income, and you would pay $230.60 on $1,000 in dividend income.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

You choose when to pay tax on capital gains

One of the main advantages capital gains have over other forms of investment income is that you control when you pay capital-gains tax. This amounts to a very simple and highly effective way of deferring tax — and it’s perfectly legal.

You pay capital gains tax on a stock only when you sell, or “realize” the increase in the value of the stock over and above what you paid for it. In contrast, interest and dividend income are taxed in the year in which they are earned.

As an added bonus, if you sell after you retire, you may be in a lower tax bracket than you are when you are earlier in your investing career. In any event, the longer you hold onto a profitable stock and put off paying capital gains tax, the longer all of your money works for you.

This can have a significant impact on your long-term returns. To continue with the example above, if you buy stock for $1,000 and then sell that stock for $2,000, you will pay $232.05 in capital gains tax. That would leave you with $1,767.95 to reinvest (not including brokerage commissions).

However, if you hang onto the stock, you keep the full $2,000 working for you until you choose to sell. That holds out the potential for even further gains, and the possibility of paying less tax on your capital gains if you sell after you retire, when you may be in a lower tax bracket.

As a member of TSI Network, you may have already seen Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities. If you haven’t yet read this new free report, click here to download your copy today. I’d also encourage you to share the report with a friend. It’s my “thank you” just for signing up for my free daily updates.

Click here to immediately download our new free report, Capital Gains Canada: 7 Secrets for Managing your Canadian Capital Gains Tax Liabilities.

As you consider how to manage your tax bill for the current income-tax season, you really shouldn’t be without our new free report, Capital Gains Canada: 7 Secrets for Managing your Canadian Capital Gains Tax Liabilities.

Issues of taxation can be confusing to all investors, whether they’re experienced or just starting out. But there are a number of easy solutions to cutting your capital gains taxes that many investors overlook when filling out their tax returns. If you continue to miss out on these breaks year after year, you could be losing out on significant tax savings! You could also end up paying more tax than you owe.

The 7 powerful secrets in this exclusive new report could save you thousands in taxes on your investments. What’s more, these 7 secrets are all clearly spelled out in plain English. You get clear, specific strategies that you can use to better manage your capital-gains tax liabilities — and start cutting your tax bill — right away.

And best of all, this exclusive report is yours FREE.

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

Here’s just some of what you’ll read about in this new free report from me, Pat McKeough, and TSI Network:

• A simple way to understand Canadian capital gains tax and how it affects your investments.
• How RRSPs can actually cost you money.
• The tactic you can use to delay taxes and lower them at the same time
• How to make the most of changes to charitable-donation laws
• And much more…

Capital gains are one of the lowest-taxed forms of income in Canada. Of course, all three forms of income — interest, dividends and capital gains — have a place in a well-planned investment portfolio. But you can significantly lower the tax you pay by structuring your portfolio so that more of your taxes are on capital gains. In this free report, you’ll learn how to do just that.

This report is the second in a series of free reports I’ve written as free downloads on TSI Network. I wrote the first report, Canadian Stock Market Basics: How to Trade Stocks and Make Good Investments in Canada to give investors of all skill levels a set of guidelines for maximizing the returns on their investments.

To get started right away, click here to download your copy of Capital Gains Canada: 7 Secrets for Managing your Canadian Capital Gains Tax Liabilities. I’d also encourage you to share the report with a friend. It’s my “thank you” just for signing up for my free daily updates.

To calculate your total capital gain on a share you sold during the previous tax year, subtract the adjusted cost base of the shares you sold from the total proceeds of the sale. The adjusted cost base of the shares is equal to the cost of the shares plus any costs associated with owning them, such as brokerage commissions.

Say, for example, you bought 1,000 shares of Canadian National Railway at $10 per share years ago. When you made the purchase, you paid $50 in brokerage commissions. When the stock reaches $60 per share, you decide to sell. Your proceeds from the sale are $59,950 ($60 per share multiplied by 1,000 shares minus $50 in brokerage commissions) and your adjusted cost base (the cost of purchase) is $10,050 ($10 per share multiplied by 1,000 shares, plus the $50 in commissions).

In his FREE special report, "Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities, " Pat McKeough shows you 7 powerful strategies that could save you thousands in taxes. And they couldn’t be easier to put into practice. Don’t miss out on this one-of-a-kind offer. Click here to claim yours now.

If you’ve bought shares of the same company more than once, the adjusted cost base you need to calculate your capital gains tax is equal to the average cost of each share. You can determine the average cost by dividing the total cost of all the shares you’ve purchased by the total number of shares you hold.

Dividend payments don’t affect your capital gains tax — unless they’re reinvested

Dividend payments in cash do not change the shares’ adjusted cost base. You pay tax on the dividends as received at the rate on dividends, not capital gains.

However, if the dividend payments are reinvested in additional shares of stock, then the total cost and total number of shares change after each new dividend reinvestment, and you must recalculate your adjusted cost base. Note that you must still pay taxes on reinvested dividends.

Some trust distributions and dividends actually lower your adjusted cost base

As well, portions of some distributions from income funds are treated as a return of capital for capital gains tax purposes. They are non-taxable when you receive them, but instead they lower your adjusted cost base for tax purposes. So they leave you with a bigger capital gain or lower capital loss when you sell.

However, this will change just over a year from now, on January 1, 2011. That’s when Ottawa’s new income-trust tax kicks in. After that date, distributions of most trusts will be treated the same as dividends from regular corporations.

If you’d like me to personally apply my value-investing approach to your investments, you should consider becoming a client of my Successful Investor Wealth Management service. Click here to learn more.