nodnub

Scorpion, I called the CRA last week and they said I could use any of the two methods. When I asked which one was better, the lady responded "well, it's up to you to decide" or something to that effect. Actually, was going to use the annualized average as it's much less complicated than the other method when you have to calculate every transaction almost twice (purchase/sale), but then it seemed to me that, because of the unusual moves of the canadian $ in 2009 (ups and downs), that using the actual exchange rate at the time of the transaction would be better for me (i.e. pay less tax). Hence my question. I'll check/read all the info/links you guys posted (thanks!). Alek Alek, there is really only one way to figure out which approach is more advantageous to you. You can use a spreadsheet to enter all your transactions and determine the taxable capital gains under both scenarios 1) average annual rate and 2) daily F/X rate. It depends entirely on your purchase and sale history - no one here will have the information to tell you the answer. Or you can pay an accountant to do it (at ~$200/hour).

I just searched for this on my favourite website for personal Canadian income tax issues. The following excerpt from TAXTIPS.CA seems to confirm exactly what Scorpion has stated. You can choose daily rate or the annual average rate for income (dividends etc), but capital gains must be based on daily exchange rates at the time of purchase and time of sale. The dividend income must be converted to Canadian dollars to determine the amount to include in your income. You can convert using the exchange rates on the dates your foreign dividend income is received, or you can use the average annual exchange rate, as published by the Bank of Canada, for all the dividends received in the year. See our Links page for links to foreign exchange rates. The adjusted cost base of the foreign shares must be calculated in Canadian dollars. If foreign funds were used to purchase the shares, the exchange rate on the date of the purchase (trading date, not settlement date) is used to convert to Canadian dollars. When shares in the foreign corporation are sold, the proceeds are converted to Canadian dollars using the exchange rate on the date of the sale (trading date). -- nodnub

Scorpion, are you sure that is the case? Have you spoken to someone at CRA about this... or can you point us to a publication or CRA guidance document that spells that out? This is obviously an area of confusion. I find that much information on CRA website is buried and very difficult to find.

unfortunately for canadians, it only syncs data with US banks and brokerages.

net operating loss

The same three people have done this long-form interview with WEB in each of the past few years. Joe Kernen always comes across as a windbag. The other two are not so bad when they aren't constantly interrupted by Kernen's dumb questions and comments. In past WEB interviews I swear Joe only spoke for the sake of hearing his own voice, instead of having anything useful to say.

yes, Charlie is usually more pessimistic. Charlie has said in the past that Warren gave him the nickname the 'Abominable "NO" Man'. I think I recall Warren stating in the past that Charlie almost always rejects Warren's investment ideas.

Do you consider it a sign of deflation because it is being offered by Honda instead of GM or Ford (who have often made such offers in the past 20 years)? 0% financing is generally just a advertising gimmick to get people on the lot. My limited understanding of auto financing is that there is usually a "gotcha" with 0% financing. (like 0% financing in lieu of a manufacturer rebate). It is not the same as a 0% loan that can be applied to any car you choose. http://www.ontariocarfinancingloans.ca/zero-percent-car-financing.html

Ottawa's decision to increase the minimum down payment required to obtain Canada Mortgage and Housing Corp. insurance on investment homes to 20 per cent, from just 5 per cent “Raising the requisite down payment could be a significant deterrent to making the investment,” he wrote in a report. “The actions announced by the government for non-owner-occupied dwellings significantly reduce the risk of speculation driving the market forward.” I read a little more and it sounds like this will only apply to non-owner occupied property. This will not address the large number of 5% down buyers that have been drinking the koolaid.

hoodlum, thanks for posting that recent article. I hope we will see a reduction in speculation and a more cautious approach from first time home buyers. I know quite a few young single people that are first time buyers in Vancouver right now - mostly looking at 1BR apts in the $300-$400K range. I don't understand why anyone would buy a first property in this market unless it was necessary (I do consider it reasonable to own a house when you have a family and want stability). I consider it an unforced error when someone who is young and single decides to buy a first home at an inflated price. It is a little different if you are trading up from another property which has also seen some price appreciation.

There appears to be something similar to EDGAR/SEDAR/SEDI: It is http://info.edinet-fsa.go.jp/ You will need to be able to read Japanese to decipher the actual filings. http://translate.google.com/translate?u=http://info.edinet-fsa.go.jp/&sl=ja&tl=en&hl=&ie=UTF-8 There is also some reference material here about someone searching for the same thing. ref: http://listproc.ucdavis.edu/archives/law-lib/law-lib.log0307/0201.html Maybe someone else here can offer better information. If you have access to bloomberg terminal then I would start there.

found some more information here: http://ble.org/pr/news/pf_headline.asp?id=28987 Marlin, This may answer your original question. What's this about no more paper Class B stock certificates? Most shareholders already hold their Class B shares in “book entry” form — an electronic record — with their stockbrokers or by Wells Fargo Shareowner Services, which is the agent for Berkshire in the railroad purchase. Each book entry Class B share would become 50 shares automatically when the split takes effect. Shareholders whose stock is all in book entry form don't need to do anything. Shareholders can keep paper stock certificates, but it makes sense to send them to their brokers or to the Wells Fargo office to become book entries. Wells Fargo will send letters to shareholders who don't submit their shares, urging them to send in the certificates. Shareholders should NOT destroy their old Class B certificates or try to return them to Berkshire. Book entry shares are less likely to be lost or stolen, and it's cheaper for Berkshire to manage them. Shares owned by someone who can't be reached could be signed over to the unclaimed property authority in the state where the person lived, after a process that takes two or more years.

I appear to be wrong on the first count. Eliminating paper cert for B Shares. http://jeffmatthewsisnotmakingthisup.blogspot.com/2010_02_01_archive.html

I don't think so. I think there was an item about reducing the number of annual meeting credentials received by each B shareholder.

eric, Have you had problems getting odd lot orders (less that 100 shares) filled?

I believe the following information is correct: The Cdn withholding tax does not apply to Canadian corporation dividends paid to US shareholder that hold the investment in an IRA. Similarly, US withholding tax do not apply to US corporation dividends paid to Canadian shareholders that hold the investment in an RRSP. -nodnub

Arbitrage! oldye, I hope that exclamation means you are joking? This looks like picking up nickels in front of a steamroller to me. ok22, at a minimum I think you should read the following two short sections of this article. They are highly relevant to what you are suggesting. http://en.wikipedia.org/wiki/Arbitrage#Execution_risk http://en.wikipedia.org/wiki/Arbitrage#Dual-listed_companies

so looking at the direct comparison of FRFHF.PK and FFH-U.TO They closed today at 348.95 and 350.00 respectively.

read this first,

Did you try asking your broker about this? I suspect they will tell you that you can exchange FFH-U.TO for FFH.TO at any time without any consequence via a simple phone call to your broker--they just make a journal entry on the account to switch it. It is the same security, just in different currency. Both FFH-U.TO and FFH.TO would have the same CUSIP... treated similarly as stocks that are dual listed on NYSE and TSX. nodnub

I think these factors as well as human tendency of inertia prevent a lot of people from making the best economic choice in the rent vs buy decision in any given area.

even if you live in a overvalued area, it sometimes makes sense to own rather than rent: If you have a family then you don't want to be forced to move if the property is sold. If you can't find another rental in the same school catchment area then your kids may have to change schools mid-year. This has happened to an acquaintance of mine; they are now renting their third house within 12 months. Obviously that is an extreme case, but it would be a disruption even if it occurred once. If you do not have a family but you have a very busy professional life: dealing with a move and finding a new rental can still be very time consuming (depending on local rental market). If you are a professional that can amount to lost income.

"The camel cannot see the crookedness of its own neck"

Too much caffiene? I must say that I don't quite get what Carl's all about. He comes on this board an writes a cryptic message about Level 3, with no discernible thesis. The thread runs hither and yon, taking about 30 replies to basically say nothing. In the end, he focuses on developing a precise share count which is a roughly useless exercise. To this date, I still don't know what the hell was the point of the original post. Was it to solicit views on Level 3's prospects? Was it to chide Prem for making a mediocre investment (medium return, super-high risk)? What was the purpose of the thread? Now he's on other threads portraying himself as a victim because other people on this board do not live in his very precise world where somebody is either 100% in favour of shorting or 100% against shorting. Get over it! SJ, I couldn't agree more. ValueCarl, You have wasted a lot of space on this board trying to make irrelevant points about other board members motives and reaction to you. It might help to consider this; the gold standard for this board would be a post that is clearly written on investment topics. If you have questions for other board members they are best written concisely, clearly, and politely in non-agressive language. If you follow this pattern, you will get much better response from the board members here. If not, then the members of this board will think you are here to waste our time and muddy the waters. If you write like a duck and act like a duck don't be surprised when someone calls you a duck.

value carl, I respectfully submit that postings without "air quotes" and ALL CAPS are more intelligible and much easier to read. Have you noticed how clear and concise Warren's writing style is? That is something we should all aspire to. best regards, nodnub