Tax Treatment of In-Kind Contributions

In-kind contributions from your non-registered account to your RRSP or TFSA: Tax treatment will vary depending on whether you have a Capital Gain or Capital Loss

• Capital Gain: Though you have not sold the shares and the shares now sit in your registered account (RRSP or TFSA) Revenue Canada treats this as a deemed disposition, “as-if” you sold the shares. You are to report the capital gain as taxable income based on your capital gains inclusion rate.

• Capital Loss: Though you have not sold the shares and the shares now sit in your registered account (RRSP or TFSA) Revenue Canada does not allow you to claim the capital loss. To claim the loss, you would need to sell the shares in your non-registered account and make a cash contribution. Subsequently, if you want to continue owning the security you can repurchase the shares in your registered account, at a later date.

• Reminder: To avoid the superficial loss rule you must wait the 30-day period before repurchasing the shares. Visit the CRA website for more information.