Wants to sell RRSP stocks


– I invested in registered stocks a few years back. The book value is $3,000. The market value is now $7,000. I need some cash. What are the tax implications of selling? Will I pay income tax on the $3,000 and capital gains tax on the $4,000 profit? – T.T.


– First, let me congratulate you for picking stocks that have more than doubled in value in this bear market. That’s a remarkable feat.

Now the bad news. Since the stocks were held in a registered plan, you do not benefit from the reduced capital gains tax rate. All withdrawals from the plan will be taxed as regular income. The source of that income doesn’t matter. – G.P.