# Sell from RRSP, then buy from Trading account



## slacker (Mar 8, 2010)

What are the tax implications (if any) of selling a stock in RRSP account, and then immediately buying the same stock in taxable trading account?

PS: Note that this is not a WITHDRAWAL from the RRSP.


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## HaroldCrump (Jun 10, 2009)

If there is no cash/securities transfer out of the RRSP, then it shouldn't matter in any way.
Your RRSP account will have a cash balance, that's all.


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## the-royal-mail (Dec 11, 2009)

When you withdraw money from the RRSP you must pay tax on it.


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## andrewf (Mar 1, 2010)

They are completely unrelated transactions, for tax purposes.


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## slacker (Mar 8, 2010)

What about the opposite? Sell a stock from taxable trading account, and independently buy from RRSP? If there's capital loss on the sell (in taxable account), would the superficial loss from CRA kick in?


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## the-royal-mail (Dec 11, 2009)

Unless I don't understand, I still think andrew's comments prevail. There are two separate transactions for tax purposes. You are trying to link them and I think that is the fault in your logic. Again, if I am in error, someone please correct me.

Think of them separately and all should be much clearer.

Also, don't try to outsmart CRA. It doesn't work.


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## MoneyGal (Apr 24, 2009)

Yes, the stop loss rules apply in that situation. CCapitalist wrote a blog post on this issue, here:

http://www.canadiancapitalist.com/in-kind-contributions-and-superficial-loss-rules/


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## MoneyGal (Apr 24, 2009)

TRM: only withdrawals from an RRSP are taxable events. Sales within an RRSP are not taxable.


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## the-royal-mail (Dec 11, 2009)

Apologies, as I hadn't seen the edit to the 1st post when I posted this morning. Thanks MG. I guess I am thinking that if the OP sells something (stocks and converts to cash for example) but then uses that same money to buy something in a different (taxable) account, then as far as CRA is concerned you have withdrawn from the RRSP at that point and tax and fees would be owing. It doesn't sound to me like the OP wants to just sell within his RRSP if he wants to put his money to work in a different/taxable account.

Selling within his RRSP would be if he cashed out of fund A (in the RRSP) and then bought units of fund/item B within that same account.

IMHO.


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## cardhu (May 26, 2009)

Who said anything about using the "same money"? The OP specifically said ... 


> Note that this is not a WITHDRAWAL from the RRSP.


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## slacker (Mar 8, 2010)

cardhu said:


> Who said anything about using the "same money"? The OP specifically said ...


Not that it matters, I edited that post after realizing that I wasn't fully clear. Thanks for everyone's help.


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## slacker (Mar 8, 2010)

Wait a minute... that doesn't sound very fair?

If I sell my taxable account, and buy from RRSP account, then I can't claim for capital loss. But if I do the same at a profit, I have to pay capital gain tax?

Shouldn't there be a superficial capital gain? haha.


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## the-royal-mail (Dec 11, 2009)

slacker, with respect I'm finding your posts and original question to be very unclear. For instance, your first post says you want to sell your stock in the RRSP and then you edited to say that you were not withdrawing from the RRSP. 

Money that is in your RRSP can be safely moved around to different investments, as long as it remains under the umbrella of your RRSP and is not cashed out and withdrawn.

When you take money out of an RRSP you have to pay taxes on it. Period.

Money that's in a taxable account is subject to taxes. When you do your income tax in March you have to pay tax on any gains in taxable accounts. Period.

I get the uneasy feeling you're trying to pull a fast one. But again, I'm finding your posts difficult to understand, and various respondents in this thread have different interpretations of what you are asking. And I find this thread gets more confusing all the time. Please be 100% clear, for best results.


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## slacker (Mar 8, 2010)

To be perfectly clear: it's not fair that there is superficial loss, but no such thing as superficial gain. It's the government that's pulling a fast one.

But I get your feedback about being more clear.


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