Advertisement
Pay attention to appreciable gains
Q: Are there any advantages to transferring stocks from a non-registered account into my TFSA, as opposed to selling the stocks and just repurchasing them in my TFSA? I’ll still have to pay capital gains taxes anyway.—Rick Birn, Cold Lake, Alta.
A: If there is an appreciable gain on those stocks, there isn’t much of an advantage. You’ll save on trading commissions by transferring the stocks in-kind instead of selling and rebuying them, but that amount won’t be significant unless you hold a lot of different stocks. If there is a loss on those stocks, you cannot claim that loss for tax purposes with an in-kind transfer. Better to sell the stock first, wait for 30 calendar days to avoid the superficial loss rules, and then repurchase the stock in your TFSA. And take care not to exceed your TFSA contribution limit. This could happen if you sell, say 1,000 shares in one account and then the prices rise by the time you go to make the purchase in the other account. During that 30 days, there’s a risk that the total value of that purchase might exceed your TFSA limit.
Ask MoneySense: Leave your question for Bruce Sellery »
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Nvidia doubles revenue in one year, Canadian inflation moves in the wrong direction, Target misses badly, Walmart beats earnings...
Here’s how to get your free ticket to attend the MoneyShow virtual expo.
Practical advice on how to build your retirement savings for employees at mid-career, the self-employed, single parents and more.
The Trump effect and Trumponomics, Shopify’s huge earnings beat, it’s sunny days for Suncor shareholders and more.
You started investing in your 20s, and you feel pretty good about doing it. But now what? Consider impact...
The U.S. election made the market go up—for now. Is volatility keeping you up at night? Here are some...
Apple and Nvidia vie for global market cap crown; Google, Microsoft and Meta crush earnings; Amazon’s Bezos takes WaPo...
While not guaranteed like an annuity, MyRetirementIncome is a flexible and simple financial product for those needing to convert...
A Certified Financial Planner provides perspective on the TFSA vs. RRSP question for a couple in their late 50s...
The Bank of Canada’s jumbo rate cut, Canadian railway earnings stay on track, Rogers disappoints, and Tesla surges on...
Can i withdraw (transfer) in-kind from my TFSA and deposit them in my non-registered account?