Canadian Money Forum banner

TFSA - Transfer Stocks?

8K views 5 replies 4 participants last post by  CanadianCapitalist 
#1 ·
Here is my situation.

-I have not used about any of my TFSA contributions for this year and past.
-All my savings are tied up in Employee Stock Purchase Plan.
-I have for the past two years being contributing significant portion of my income towards this plan (it is in scotia bank itrade pan)
-Due to increase in stock price/15% discount price I have made healthy gains in this account.

How can I take advantage of TFSA in my certain situation? Is it possible to transfer my money in this account into TFSA account? I'm trying to withdraw my gains with the least tax bill.
 
#3 ·
+1.

A transfer to the TFSA with the aim withdraw capital gains with the smallest tax bill won't work because the stock is not in a TFSA. The transfer will be a "deemed disposition" (i.e. treat it like a sale) and generate a capital gain.
The only option that might reduce the capital gains tax that comes to mind is if there is other stock to sell for a loss (or un-claimed capital losses) to write-off against the capital gain.

If the stock is likely to keep growing - transferring now will shelter any future gains.

Cheers
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top