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By Jason Heath, CFP on July 2, 2025
Estimated reading time: 5 minutes

By Jason Heath, CFP on July 2, 2025
Estimated reading time: 5 minutes

A MoneySense reader wants input on the tax implications of her investment withdrawals, but she can’t get a straight answer from her advisor.

I have a GIC and wondered what if I take out $50,000, how much income tax will I be paying?

My financial advisor is not very helpful.

–Louise

There are tax considerations when you own investments. There may be tax owing when you sell investments. And different investment accounts have different tax implications when you take withdrawals.

I am sorry to hear your advisor has not been helpful, Louise. The financial industry has made it confusing for consumers, and most financial advisors do not really provide financial advice. They typically provide investment advice or insurance advice, generally focused on the products they are licensed to advise clients on, or that their company sells. As a result, their advice may be limited.

Many advisors have tax knowledge, and in some cases, they are quite knowledgeable. The advisor managing your investments may not have the answers to tax questions.

How investments are taxed depends, in part, on what type of account they’re held in.

When you sell an investment, tax only applies to taxable accounts. Capital gains or losses are irrelevant in a tax-free savings account (TFSA) and registered retirement savings plan (RRSP). But in a taxable account, selling an investment typically leads to a capital gain or loss, half of which is taxable (a capital........

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