Comments on: How Are Bonds Taxed?

By: How Questrade Is Solving My Foreign Content Objectives | Ending the Rat Race

Fri, 05 Nov 2010 04:30:20 +0000

[...] prominent blog that offers a wealth of information, also recently posted an article titled, “How Are Bonds Taxed?” As usual, Tax Guy was able to suggest that holding bonds in registered accounts is generally [...]

By: JP (The Rat)

JP (The Rat) — Thu, 04 Nov 2010 12:53:50 +0000

Thanks TG

By: Tax Guy

Tax Guy — Thu, 04 Nov 2010 11:14:58 +0000

Bonds issued by public companies typically have semi-annual coupons although some don’t.

Depending on the overall portfolio, the most tax efficient allocation should put interest bearing instruments in registered accounts.

By: JP (The Rat)

JP (The Rat) — Thu, 04 Nov 2010 03:30:00 +0000

Great post!

I’m in the process of thinking about investing in corporate bonds and I’m wondering if the interest payment frequency is typically semi-annually or are they more often annual as in the example you give at the beginning of your article.

Also, do you recommend, generally speaking, that bonds should be held in registered accounts given the fact that interest earned is taxed at the marginal rate?

Thanks
JP

By: Canadian Personal Finance & Investing Carnival

Canadian Personal Finance & Investing Carnival — Fri, 15 Oct 2010 10:08:01 +0000

[...] Tax Resource Blog presents How Are Bonds Taxed?, saying, “A bond or debenture is a form of debt that pays interest periodically. Depending on [...]

By: Tax Guy

Tax Guy — Thu, 01 Apr 2010 15:48:05 +0000

Hi Kirsten:
The T5 will report the full amount of interest received on the bond in Box 13. You report this amount on Line 121 of schedule 4.

The accrued interest paid is reported on your transaction summary or trade confirmation and is reported on Line 221 of Schedule 4.

By: Kirsten

Kirsten — Wed, 31 Mar 2010 23:26:36 +0000

In the section “Taxation of Interest Paying Bonds”, can you tell me how, exactly, to deduct the accrued interest from taxable income?

I have received a T5 statement for the interest earned on my corporate bonds, and although the accrued interest is noted on the investment income summary, it is not deducted from the amount on the actual slip, nor does it appear anywhere on the slip.

I would really rather not have to call CRA to ask!

By: US Citizens Living in Canada and Holding Taxable US Bonds | Canadian Tax Resource

Tue, 23 Sep 2008 12:01:05 +0000

[...] September 4th article “How Bonds are Taxed” discussed that taxation of bonds held by residents of Canada for tax purposes. A reader [...]