Q&A: Claiming capital losses

Question: I have some capital gains that I would like to offset with capital losses. Can I switch some preferred shares (currently down) to my self-directed RRSP and switch an equal amount of cash to my regular stock trading account to accomplish this? – Jim B.

Gordon Pape answers: Absolutely not! Although transferring securities into an RRSP triggers a capital gain for tax purposes, any losses incurred are not allowed. You would have to sell the preferreds first and then repurchase them inside the RRSP if you want a deductible capital loss.

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