TFSA [Transfer in kind]
TFSA [Transfer in kind]
How do you make a transfer in kind to your TFSA? it will create a loss in my personal and I expect a new ACB in my TFSA. Correct?
- northbynorthwest
- Contributor
- Posts: 165
- Joined: 19 Jan 2007 01:07
- Location: Vancouver
Re: TFSA
Call your brokerage, assuming in-kind transfers are not an online option.
Note that a capital loss on a holding in your taxable account cannot be claimed when you contribute it in-kind to a registered account. So you may be best to sell it in the taxable side, so you trigger a capital loss you can claim, and then contribute the cash to your TFSA. If you then want to buy back the same thing in your TFSA I believe you must wait 30 days to avoid running afoul of the ‘superficial loss’ rule.
When you do transfer securities in-kind to a TFSA you should not need to track the ACB in the TFSA, because it’s tax free.Your only requirement is to report any capital gain being realized in the taxable account.
Note that a capital loss on a holding in your taxable account cannot be claimed when you contribute it in-kind to a registered account. So you may be best to sell it in the taxable side, so you trigger a capital loss you can claim, and then contribute the cash to your TFSA. If you then want to buy back the same thing in your TFSA I believe you must wait 30 days to avoid running afoul of the ‘superficial loss’ rule.
When you do transfer securities in-kind to a TFSA you should not need to track the ACB in the TFSA, because it’s tax free.Your only requirement is to report any capital gain being realized in the taxable account.
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- Veteran Contributor
- Posts: 3385
- Joined: 27 May 2008 16:25
Re: TFSA [Transfer in kind]
If you're seeking to transfer a mutual fund or ETF to TFSA and it's at a loss, best to find a different fund/ETF with a different symbol but same asset class (preferably lower-fee if possible). Sell to cash, contribute to TFSA and buy the new fund.