Q&A: Transferring stock to a TFSA
Question: Ok, so, I’m all excited about contributing to a new TFSA (Tax-Free Savings Account) in January by transferring in an equity now held in my non-registered account. But wait, will the Canada Revenue Agency view this transfer as a deemed disposition of the stock and require me to pay capital gains on any profit made? – Eric M., BC.
Gordon Pape answers: Yes they will. The same rules apply as with RRSPs in this regard. And do not make the mistake of transferring a losing stock to a TFSA as the capital loss would not be allowed in that situation. Sell the stock first and contribute the cash.
You can find out more about these new accounts at www.TFSAbook.com