Assume I have just three unused accounts – RRSP ($90 000), TFSA ($63 500 in 2019), and non-registered investment account. I'm Ontarian. I use another example like XUU. Where to put it first?
I discombobulated by pp 5,6 in Foreign Withholding Taxes 2016 Jun 17 by Justin Bender B.Comm Finance Guelph and Dan Bortolotti B.A. English University of Waterloo - St. Jerome's University.
One hand, Level 1 withholding taxes apply in TFSA and RRSP. But best to max TFSA then RRSP first.
Other hand, you can recover withholding taxes non-registered account. But no tax avoidance or deferral!
Foreign Withholding Tax: Which Fund Goes Where? | Canadian Couch Potato doesn't instruct where to put XUU that belongs "A. Canadian mutual fund or ETF that holds US or international stocks directly". Note how it doesn't bring-up TFSA.
For non-registered accounts choose A, B or D.
For RRSPs choose B. Avoid A and D.