# Transferring Stocks to TFSA



## cannew (Jun 19, 2011)

Are there any tax consequences when one transfers stocks into a TFSA? Say the stock is up from it's purchase price and one transfers in $5,000 worth of the stocks.


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## CanadianCapitalist (Mar 31, 2009)

Yes. It is a deemed disposition. Since you have gains, there will be capital gains to pay.


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## Toronto.gal (Jan 8, 2010)

More information here:

http://taxtips.ca/personaltax/investing/transfersharestorrsp.htm


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## alphatrader2000 (Aug 18, 2010)

cannew said:


> Are there any tax consequences when one transfers stocks into a TFSA? Say the stock is up from it's purchase price and one transfers in $5,000 worth of the stocks.


Disposition -> Capital Gain/Loss
also contribution, even if you do a swap. Most brokerage firms do not allow any swaps any longer.


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## Eclectic12 (Oct 20, 2010)

alphatrader2000 said:


> Disposition -> Capital Gain/Loss
> also contribution, even if you do a swap. Most brokerage firms do not allow any swaps any longer.


A Deemed Disposition in general, can be a capital gain or loss. Based on the OP's statement, this will be a CG.

Since the transfer is to a TFSA, this is a good thing. 

As per the url Toronto.gal provided, if the DD was a loss, it would not be deductible, tax-wise. If one insists on contributing to the TFSA when the DD is a loss, it's better to sell for the loss (and keep the tax write-off), then contribute the cash.

Also - when I asked about the process for the stock transfer to TFSA, I was informed that I would be allowed to select the price of the DD, based on the range the stock traded, the day the transfer occurred. 

So I watched the stock for a while and waited for a day when the stock was down. I then called in after 2pm and picked the lowest price traded. This way the CG was lower.



Cheers


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