Quote:
Originally Posted by Slava
I'm not sure I follow? In general if you take the withdrawal as grants though that is the best for a few reasons.
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Correct me if I'm wrong, withdrawals from grants and growth are taxable, albeit in the hands of the beneficiary but contributions can be withdrew tax free.
Therefore, if your RESP investment is in a loss position, you would want to designate the losses as coming out from grants (there'll be no growth to speak off in this case).
Say, you have contribution of $2500 and grant of $500, you suffer a loss $500 and you want to withdraw $2500, what would you do?
My theory is you desginate the $2500 withdraw form contributions. If you designate say, $2000 from contributions and $500 from grants, you still have $500 that is taxable, am I right?