Jump to main navigation Jump to main content. Last updated Friday, Feb. Based on the feedback I received from readers, this is one of those tasks that, on the pleasure scale, ranks right up there with plucking nose hairs. Well, guess what folks: As an investor, and as a human being in general, I like to avoid extra work when possible.

I also enjoy saving money.

If you hold your U. Another benefit of RRSPs is that there are no taxes on income, so your dividends from U. Not so in a non-registered account: Moreover, in a non-registered account, most U. You can usually recoup this amount by claiming a foreign tax credit against your Canadian taxes but, again, that involves work. Tax only comes into play when you make withdrawals from these registered plans.

Many investors assume that tax-free savings accounts TFSAs and registered education savings plans RESPs are also exempt from U. Because TFSAs and RESPs are not specifically for pension or retirement purposes, U. If you already hold U.

Another factor to consider is the type of U. For example, if a U. Determining the optimum location for stocks in your portfolio is a complex process that involves a variety of factors — including tax rates, yields and expected returns.

I like to keep things as simple as possible. If I can eliminate taxes on my U. Follow John Heinzl on Twitter: INVESTOR CLINIC Calculating gains and losses on U.

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Investing U.S. stocks in a TFSA isn't exactly tax-free

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Globe Investor is part of The Globe and Mail's Report on Business. Selected data supplied by Thomson Reuters. Comments Share via email Share on facebook Share on twitter Share on LinkedIn Print License article. Keep them in your RRSP. Also on The Globe and Mail. Strategies for investing in U.

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Can I reset my TFSA contribution room by cashing out?

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TFSAs, RRSPs: ‘Where should I hold U.S. dividend stocks?’ | Financial Post

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