Non-registered account

Non-registered accounts are the residual category: any brokerage account that isn't a TFSA, RRSP, FHSA, RESP, RRIF, or LIRA. They carry no contribution limits and no withdrawal rules, at the cost of no tax shelter.

The tax treatment of income inside a non-registered account depends on the type of income:

• Interest — fully taxable at the investor's marginal rate.
• Eligible Canadian dividends — taxable with a dividend tax credit.
• Foreign dividends — taxable as ordinary income; often subject to withholding.
• Capital gains — 50% of the gain is taxable, only when realized.

Non-registered accounts are the only Canadian accounts that hold losing positions productively — realized losses can offset realized gains, which is the mechanic behind tax-loss harvesting.