# BIP.UN vs BIPC in registered accounts



## MrMatt (Dec 21, 2011)

Within a registered account there doesn't seem to be any real benefit.
Right now there is a decent premium on the BIPC, do you think this will be sustained, or should I cash in on it now while I can?


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## SixesAndSevens (Dec 4, 2009)

I agree...for Canadian registered accounts, there doesn't seem to be any benefit of holding BIPC over BIP.UN.
I sold the BIPC that I got from the stock split and bought BIP.UN for the same amount.

BIPC seems to have quite a healthy premium over BIP.UN....I haven't done the math, but seems the premium is higher than it should be...
If someone has done the calculation, I'd be keen to hear...

Or maybe the spread is higher because the IPO market makers are still supporting the stock.
Not sure how long that usually is....2 - 3 months maybe?


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## My Own Advisor (Sep 24, 2012)

Anyone thinking of putting BIPC or BEPC into their TFSA for 2023?

Thoughts?

(The challenge I see: BIPC and BEPC pay divis in USD $$ so ideal to keep on USD-side of TFSA but then you have withholding taxes....) Not ideal. Might keep in RRSP this way.


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## MrMatt (Dec 21, 2011)

My Own Advisor said:


> Anyone thinking of putting BIPC or BEPC into their TFSA for 2023?
> 
> Thoughts?
> 
> (The challenge I see: BIPC and BEPC pay divis in USD $$ so ideal to keep on USD-side of TFSA but then you have withholding taxes....) Not ideal. Might keep in RRSP this way.


BIP.UN is $42.68, BIPC is $52.83, why would you pay a $10 premium?


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## My Own Advisor (Sep 24, 2012)

Fair point MrMatt. The prices should be closer IMO but potentially a good idea to go with BIP.UN if I pull the trigger. I already have some BIPC inside the RRSP.


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## Birder (9 mo ago)

My Own Advisor said:


> (The challenge I see: BIPC and BEPC pay divis in USD $$ so ideal to keep on USD-side of TFSA but then you have withholding taxes....) Not ideal. Might keep in RRSP this way.


There is no withholding tax on BIPC or BEPC. They are not US Corporations. Currency of the dividends is irrelevant.


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## Money172375 (Jun 29, 2018)

MrMatt said:


> BIP.UN is $42.68, BIPC is $52.83, why would you pay a $10 premium?


i believe the distribution for BIP.UN is fully taxable (cash distribution) while BIPC offers a dividend payment and the associated tax benefits.

I could be wrong, but I recall making the switch to BIPC when I was offered the choice.


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## MrMatt (Dec 21, 2011)

Money172375 said:


> i believe the distribution for BIP.UN is fully taxable (cash distribution) while BIPC offers a dividend payment and the associated tax benefits.
> 
> I could be wrong, but I recall making the switch to BIPC when I was offered the choice.


I didn't realize there was a choice, I just got the split.
But also in a TFSA I think BIP.UN is a better choice, and with the premium so large right now, I'm thinking of selling my B*C's


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## Birder (9 mo ago)

The .UN versions are limited parternerships based in Bermuda and, as such, their distributions have foreign dividend and interest income, capital gains and even return of capital. Details of the amounts subject to US withholding tax are published on Brookfield's website. BIPC pays regular dividends and there is no withholding tax for Canadian residents.


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## londoncalling (Sep 17, 2011)

It is my understanding there is no withholding tax if held in RRSP so that may not matter for @My Own Advisor. Am I correct? I would go with BIP.UN because of the difference in share price even though there may always be a premium for BIPC because of the tax treatment. Currency of the dividend may be relevant. Some brokerages will convert the dividend if the stock is held in Canadian currency. . I hold BIP as a result on the NYSE so that Questrade does not get a chance to skim on the forex. I recall there being a thread on this previously on CMF. Not sure if that has changed at any brokerages since it was last discussed.


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## My Own Advisor (Sep 24, 2012)

Correct, BIPC and BIP.UN = no withholding taxes inside RRSP. I know because I've had both there 

Currency of the dividend may be relevant...given some brokerages will convert the dividend from USD to CDN but some brokerages will skim on forex. Not great. 

I might just keep BIPC inside RRSP and buy other stuff inside TFSA  Easier.


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