Swapping RRIF stocks

Zoomer | January 1st, 2006

Q – I want to swap $30,000 worth of CSBs outside of my RRIF with $30,000 worth of stock which is inside my RRIF.  The stocks have appreciated about 100% since I purchased them.  What is the adjusted cost basis for the stocks when I move them outside the RRIF, i.e. if I sell the stocks in the future will I have to pay capital gains on based on the purchase price of $15,000 or on the swap price of $30,000.  Alternatively,  I could sell them and perform the swap with cash and repurchase the stock outside the RRIF but I am looking to save the fees.  – G.W.


A – The stocks will be treated as a new acquisition when they come out of the RRIF. Your future capital gains will be based on the value of the shares when the swap takes place. Remember that the value of the CSBs that go into the plan must include accrued interest. Also, you will have to pay tax on all interest earned on the CSBs up to the time they go into the plan. – G.P.