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Discussion Starter #1
I would like to swap a large amount of Bell Bonds from my investment account into my RRSP. BMO, iTrade and TD do not do these swaps anymore.

Reading the government rulings at
http://www.cra-arc.gc.ca/gncy/bdgt/2011/qa13-eng.html#_Toc288625900
I see that only 'abusive' swaps are forbidden.

I wonder if swapping bonds would be considered abusive. I would like to avoid tax on the interest, but I do not see this as abusive. Is it?

Is there a financial institution that would allow this swap?

I have considered selling the bonds and then buying them back in the RRSP. However, it seems that even if I was willing to pay the 3 to 4% spread, the government does not allow the same person to buy back bonds that he has just sold.

I don't understand why these simple transactions are considered abusive.
 

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According to the article on this web site: http://wheredoesallmymoneygo.com/contributing-investments-as-opposed-to-cash-to-your-rrsp/
you should be able to do it.

I think some brokerages have problems with allowing it because it is hard for them to produce the correct paper trail of FMV and accrued interest at the time of transfer, not because it isn't permitted by CRA. (And how do you determine the FMV of a corporate bond on the date of transfer anyway, unless you actually sell it? Is there a published average daily price that the industry & CRA accepts for this purpose?)
 

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Discussion Starter #3
Thanks OhGreatGuru, however the article you are referring to is from 2007. The rules have changed last summer as the government is trying to close some loopholes.

By the way, bonds have a quoted price on a daily basis.
 
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