Investing

Transferring shares in-kind from non-reg to RRSP

  • Last Updated:
  • Feb 12th, 2019 7:43 pm
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes

Transferring shares in-kind from non-reg to RRSP

Can I transfer in-kind specific amount of US shares from non-reg account to RRSP and get contribution receipt? Any potential issues with such transfer?
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10 replies
Deal Addict
Jan 21, 2014
4155 posts
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gibor365365 wrote:
Feb 12th, 2019 12:32 am
Can I transfer in-kind specific amount of US shares from non-reg account to RRSP and get contribution receipt? Any potential issues with such transfer?
should not be a problem, I usually do that with US money market funds, broker will convert to CAD. For stocks/ETFs, if you gain, you need to report the capital gain amount at the time of transfer. If you lose money, then consider that amount is lost forever, you cannot claim a loss as you still hold the securities
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes
mkl38s wrote:
Feb 12th, 2019 6:49 am
should not be a problem, I usually do that with US money market funds, broker will convert to CAD. For stocks/ETFs, if you gain, you need to report the capital gain amount at the time of transfer. If you lose money, then consider that amount is lost forever, you cannot claim a loss as you still hold the securities
I want to transfer USD stock to CIBC IE USD RRSP,so there is no FX conversion.
Regarding "
you need to report the capital gain amount at the time of transfer
", should I calculate ACB/Capital gain I had on cash account before transfer and report it? Really?
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Deal Addict
Jan 21, 2014
4155 posts
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gibor365365 wrote:
Feb 12th, 2019 11:54 am
should I calculate ACB/Capital gain I had on cash account before transfer and report it? Really?
Yup, that is the rule if you transferring from non-registered into registered account. I don't know if CIBC will issue a statement for you or not, but you need to report the capital gain. In your RRSP, the cost will now be the amount at the time you transfer in
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes
mkl38s wrote:
Feb 12th, 2019 12:11 pm
Yup, that is the rule if you transferring from non-registered into registered account. I don't know if CIBC will issue a statement for you or not, but you need to report the capital gain. In your RRSP, the cost will now be the amount at the time you transfer in
Too bad :( . Any way to avoid paying capital gain at all?! My wife is still working and in the highest tax bracket, I'm retired and in the lowest tax bracket.
My wife holds US stock in non-reg account (RSU and ESPP) . Can she gift me her shares to lessen taxes? or she should report capital gain while gifting?
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Deal Addict
Feb 4, 2015
4560 posts
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Canada, Eh!!
gibor365365 wrote:
Feb 12th, 2019 12:19 pm
Too bad :( . Any way to avoid paying capital gain at all?! My wife is still working and in the highest tax bracket, I'm retired and in the lowest tax bracket.
My wife holds US stock in non-reg account (RSU and ESPP) . Can she gift me her shares to lessen taxes? or she should report capital gain while gifting?
Have her do spousal RRSP contribution... she gets deduction and funds go under your name.

In case withdrawing from your rrsp [since in lowest tax bracket] search/read up on 3 year attribution rule.
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes
georvu wrote:
Feb 12th, 2019 1:27 pm
Have her do spousal RRSP contribution... she gets deduction and funds go under your name.

In case withdrawing from your rrsp [since in lowest tax bracket] search/read up on 3 year attribution rule.
I'm planning to convert SRRSP to SRRIF and there is no attribution rule on SRRIFs
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Deal Addict
Feb 4, 2015
4560 posts
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Canada, Eh!!
gibor365365 wrote:
Feb 12th, 2019 2:00 pm
I'm planning to convert SRRSP to SRRIF and there is no attribution rule on SRRIFs
Then definitely do... any funds withdrawn could be put into either one of your TFSA which has no tax
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes
georvu wrote:
Feb 12th, 2019 3:13 pm
Then definitely do... any funds withdrawn could be put into either one of your TFSA which has no tax
When a spousal RRSP has been converted to a RRIF, it becomes a spousal RRIF, and withdrawals are made by the spouse (not the contributing spouse). There may be attribution of income to the contributing spouse for any RRIF withdrawals that are in excess of the minimum annual withdrawal for the year, depending on the amount of spousal contributions in the year or the two immediately preceding taxation years.
Thus if I withdraw RIF minimum, no attribution rule applies
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Member
Sep 2, 2009
386 posts
220 upvotes
Ottawa
gibor365365 wrote:
Feb 12th, 2019 11:54 am
I want to transfer USD stock to CIBC IE USD RRSP,so there is no FX conversion.
Someone please confirm: but I'm pretty sure that the USD capital gains will be converted to CDN for tax purposes (even though the US shares stay US shares). A "phantom" conversion for CRA we shall say.
Last edited by cloak on Feb 12th, 2019 8:47 pm, edited 1 time in total.
[OP]
Penalty Box
Apr 27, 2015
1331 posts
255 upvotes
cloak wrote:
Feb 12th, 2019 6:01 pm
Someone please confirm: but I'm pretty here that the USD capital gains will be converted to CDN for tax purposes (even though the US shares stay US shares). A "phantom" conversion for CRA we shall say.
If I should report capital gain, I should convert it to CDN by myself (as I'm doing now with dividends), but I have no idea what FX rate I should apply.... in any case, if we need (and looks like we need) to report CPG, we won't touch those share (will leave it in non-reg) until we 100% retired and than will sell it in small trenches or transfer to RRSP (in order pay as less as possible in taxes). We already paid too much to this country
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