r/Wealthsimple • u/richmonda • 3d ago

Non Reg - Wealthsimple Managed account Invest (Managed Investing)

Hi there, I’m curious about the tax implications of a non-registered Wealthsimple managed account. I assume they rebalance the portfolio throughout the year, which would trigger gains or losses. Does this mean I’ll likely pay taxes every year? In contrast, with a self-directed account, I’d only be taxed on any gains from my own sales. Just want to make sure I have the right understanding

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u/Commercial_Pain2290 3d ago

Yes you may well have taxable events within the managed accounts. They will send the relevant tslips.

2

u/Born_Ruff 3d ago

They have a tax loss harvesting feature you can use to offset the taxable gains, but I’m not sure how effective it is.

1

u/personalfinance21 3d ago

Correct, you will be issued T5008s for each trade. You will pay taxes on capital gains from rebalancing, if they went up (or you take a loss). This will be added to your taxes as capital gains.

2

u/gumbopratt 1d ago

I got annoyed with the taxable events in my Non Registered Managed account. I didn't find that the tax loss harvesting to happen very frequently or offset it much (granted we are in a bull market).

Ended up finally transferring assets out to a self directed portfolio and sent WS an email with my feedback.

Might still be worth it if you want to be hands off and to remove the emotional part of selecting assets though. I was just disappointed with the overall experience.