transfer stocks | Tax Free Savings Accounts | Discussion forum

High Interest Savings Best Tips: $100 prize each week for the most useful forum post!
 

 
Current User: Guest Login Register
Please consider registering


Register? | Lost Your Password?

Search Forums:


 






Minimum search word length is 4 characters – Maximum search word length is 84 characters
Wildcard Usage:
*  matches any number of characters    %  matches exactly one character

Discussion forum Tax Free Savings Accounts transfer stocks

transfer stocks  
Page:   1   Reply to Post Add a New Topic
UserPost

11:41 am
January 26, 2009


ronaldo

Guest

  Quote and Reply
  Report Post
Print this Post
1

I heard that if you transfer in $5000 worth of stock into a TFSA that it is considered sold and you have to pay tax on that at 1st. If true kind of defeats the purpose, especially if not a good stock Is this true

1:39 pm
January 26, 2009


Craig

Guest

  Quote and Reply
  Report Post
Print this Post
2

Yes it's true. You are deemed to have sold the stock on the day you transfer it to your TFSA. If you sell at a profit, you have a capital gain that you might have to declare depending on your personal tax situation (e.g. you may have some unapplied capital losses, etc…).

You have to sell your stock sometime, whether it's to liquidate it or transfer it to annother broker, etc… You're going to realize a capital gain (or loss) when you do this, so the fact that you happen to be transferring to a TFSA is irrelevant. Once the stock is inside your TFSA, any capital gains you realize upon selling the stock will be "tax free". However, you will NOT be able to use capital LOSSES incurred within a TFSA to offset your capital gains. Many people aren't aware of this.

The only exception to all of this is if you transfer your stocks within or between an RRSP.

You should have a chat with your financial advisor before you commit to anything.

3:26 pm
February 15, 2009


jaBob

Guest

  Quote and Reply
  Report Post
Print this Post
3

In this regard TFSa soperate just the same as RRSPs:
- You can buy the investments inside the TFSA, or you can transfer-in existing securities (see list above) currently held in a taxable (i.e. non-registered) account without a problem. However, if at all possible you should aim to do this with ones that have a minimal capital gain/loss because (just like transferring into an RRSP) you are immediately liable for the tax on any capital gain, and you lose the ability to claim the capital loss.
- Note that if you sell the stock first in order to realize the capital loss, then don't buy it back inside the TFSA before at least 30 days have passed or you lose the ability to use the loss.
- In any case, if it's "not a good stock":
– Why not sell if anyway.
– Don't put things into your TFSA which you don't think will have a good chance of paying good interest/dividend, or growing well. You want to pass less tax, and this only happens when your investment make money inside the TFSA.
Page:   1   Reply to Post

Reply to Topic:
transfer stocks

Guest Name (Required):

Guest Email (Required):

HTML Editor
Post New Reply

Guest URL (required)

Math Required!
What is the sum of:
1 + 4