# Delisted stock in RRSP



## JackT (Feb 18, 2016)

I have a stock in my RRSP which is worthless / unpriced / delisted etc. After years of seeing it on my statement, I've decided to accept my carelessness and move on to have it removed. I contacted my bank and was told that I could fill out a form "Deed of Gift for Defunct Securities" where I would donate / gift this worthless stock to them and remove it from my statement. 

1) Since the stock is in my RRSP I can't claim any loss?
2) Is there any tax consequence of removing /gifting the stock from my RRSP if it's value is nothing?

I also had a stock (Swisher Hygiene Inc.) in my RRSP which became a non qualified investment earlier this year because it's price dropped and it moved to another exchange. I swapped it out into my investment account. (Transferred equal amount of cash from investment account to RRSP to move shares into investment account.) Still not accepting defeat.

1) Is the price of the stock at the time of the swap in the investment account my new average cost for future tax filings?

Thanks,
Jack


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## OptsyEagle (Nov 29, 2009)

Pretty much yes to all the questions. No claiming of a loss or tax consequences of the gift and yes, the cost base for Swisher is the price at which it was removed from the RRSP.


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## Eclectic12 (Oct 20, 2010)

JackT said:


> ... 1) Since the stock is in my RRSP I can't claim any loss?


Yes ... this is the standard warning for articles/books discussing registered accounts so I am not sure why there would be any confusion.




JackT said:


> ... 2) Is there any tax consequence of removing /gifting the stock from my RRSP if it's value is nothing?


The only consequence that I can think of is that if the stock were to recover, one likely won't get any value. If the company has been sold for assets like a few I've had in my taxable account ... there is no chance of a recovery.




JackT said:


> ... Is the price of the stock [swapped out of RRSP for cash] at the time of the swap in the investment account my new average cost for future tax filings?


Yes ... the good scenario is if it becomes worthless, there will be a small CL to use against taxable CG plus the cash in the RRSP won't drop in value with it.

The mixed scenario is that if it gains, one will have CG that one would not have had, if left in the RRSP.


The bright side is that the gov't is losing their tax dollars as well so while being bad (especially where one was depending on it for retirement living), there is still a bit of a benefit.

Cheers


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## JackT (Feb 18, 2016)

Thanks for the reply. 


Eclectic12 -"Yes ... this is the standard warning for articles/books discussing registered accounts so I am not sure why there would be any confusion."


The confusion was about another stock not Swisher . If I'm donating or gifting a stock that is worthless from my RRSP to my bank, am I essentially withdrawing nothing from my RRSP because it's worthless?


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