Personal Finance

Transfer capital loss from TFSA to Margin?

  • Last Updated:
  • Jun 14th, 2018 9:36 pm
[OP]
Sr. Member
User avatar
Jan 26, 2010
718 posts
423 upvotes
Milton

Transfer capital loss from TFSA to Margin?

Hi guys,

I bought 1000 of stock XYZ at $3 per share in my TFSA account.

Each share is now worth $2, so I am $1000 in the red.

Question: can I transfer this position from my TFSA account to my Margin account? I would realise this loss later this year to offset some capital gains.

If so, how much room would I free up in my TFSA? $2000 or $3000?
4 replies
Member
Jan 1, 2017
285 posts
147 upvotes
TFSA accounts are tax sheltered... you don’t pay capital gains and can’t claim capital loss either. So you can’t do what you are saying
Member
Aug 17, 2006
358 posts
58 upvotes
Toronto
Haha. Hellz no.
Nice try.
Deal Addict
Oct 4, 2009
2033 posts
765 upvotes
Montreal
PapaQBear wrote:
Jun 14th, 2018 4:46 pm
Question: can I transfer this position from my TFSA account to my Margin account? I would realise this loss later this year to offset some capital gains.

If so, how much room would I free up in my TFSA? $2000 or $3000?
Sure but the transfer will occur at the price in effect when the transfer occurs. That will be your ACB and there will be no loss to claim(unless it goes down from that time forward).

The amount that is transferred is the amount of TFSA room you would recover the following year. Your capital loss is not recoverable WRT to TFSA room, just like you aren’t penalized for having a larger TFSA value than the max contribution room through capital gains and income inside the TFSA.

If what you were planning to do was allowed, any investor with half a brain would eventually have all his investments sheltered tax free and worth millions.
[OP]
Sr. Member
User avatar
Jan 26, 2010
718 posts
423 upvotes
Milton
Thanks for the responses, guys.

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