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I have had my eye on Home Depot and LMT for some time now. I am torn however wether or not to purchase these in my tfsa or cash account (RRSP is off the table as I am maxed out in room.) Only down side to my tfsa is a portion of dividend will be held back correct?

Thanks
Chad

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Asked on January 10, 2022 10:34 am
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Correct, 15% of any dividends if you have completed your WBEN-15 (or whatever the alpha-numeric) form for the IRS in both cash and TFSA. The withholding tax is recoverable as a tax credit in a cash account, but lost and gone in the TFSA.

otoh, for two extra trades (a pittance) you could sell something in your RRSP to free up cash/space and then rebuy the same stock if you are still committed to it outside your RRSP.

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Posted by Krispee
Answered on January 10, 2022 11:35 am
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