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[OP]
Jr. Member
Oct 19, 2009
107 posts
6 upvotes
Markham

TFSA

If I transfer a stock that I'm up on into a TFSA, would it count the price I bought it at or the price it currently is at.

For instance:

I have 100 dollars of contribution room
I bought a stock at 10 dollars, the stock is now worth 20 dollars.
Can I transfer 10 shares in or 5 shares?
2 replies
Deal Addict
User avatar
Feb 1, 2012
1939 posts
3228 upvotes
Thunder Bay, ON
Since you only have $100 contribution room you can only transfer 5 shares at $20/share.

If you transfer the shares from an RRSP it will be considered $100 income for the year, taxed at your marginal rate for other income, and you will receive a T4RSP from your broker to declare the income. If you transfer from a non-registered account to a TFSA then you will have a deemed disposition of 5 shares and have to declare a $50 capital gain which will be a $25 taxable capital gain (i.e. taxed at half your marginal rate for other income).
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.

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