US stock: do we have disqualifying disposition to worry about?
Situation:
What we have done so far is to transfer these shares annually from US broker --> Questrade margin --> Questrade RRSP. Questrade records cost basis in margin account and contribution amounts to RRSP, which we report to the CRA at tax time. Her annual contributions to share purchases are sufficient for what we want to contribute to her RRSP annually.
Any US cash from broker is requested as a cheque, as they only buy whole shares with new money only (not new money + available cash).
Question: Do we need to worry about any US disqualifying disposition in our pan? We are not selling the shares (nor do we plan on for at least 5 years), but not sure if the transfer from a non registered account to an RRSP is considered the same as deemed disposition with CRA.
- wife works for a US firm in Canada
- part of her total compensation includes company stock, which she must elect to participate in
- a %age of her paycheck is withheld each pay period to purchase company stock at the end of each quarter
- their purchase price is a 5% discount off market price (forget if it's discount on day of purchase or last x days average)
- the plan only buys whole shares, so there is always some USD left with broker (plus dividends, minus 15% withholding tax)
- company selected broker is US based, and this is a non-registered account
What we have done so far is to transfer these shares annually from US broker --> Questrade margin --> Questrade RRSP. Questrade records cost basis in margin account and contribution amounts to RRSP, which we report to the CRA at tax time. Her annual contributions to share purchases are sufficient for what we want to contribute to her RRSP annually.
Any US cash from broker is requested as a cheque, as they only buy whole shares with new money only (not new money + available cash).
Question: Do we need to worry about any US disqualifying disposition in our pan? We are not selling the shares (nor do we plan on for at least 5 years), but not sure if the transfer from a non registered account to an RRSP is considered the same as deemed disposition with CRA.