There are some considerations if you’re thinking of moving stocks to a Tax-Free Savings Account (TFSA). You may be able to make “in kind” contributions (for example, securities you hold in a non-registered account) to your TFSA, as long as the property is a qualified investment. In doing so, you may trigger a tax event. This type of “in kind” transfer is considered a disposition by the Canada Revenue Agency – meaning you may need to report a capital gain if the fair market value of the stock has gone up since you purchased it. If the stock value has gone down, you cannot claim the capital loss.
As tax rules are enforced by the Canada Revenue Agency (CRA), if you have questions about this type of transfer, you can contact the CRA. You can also speak to a registered financial advisor to learn more about this type of transfer.
Learn more about investors and tax.