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Hope someone could help resolve my confusion; I transferred some stock from my non-registered account to my RRSP investment account. As would be deemed a disposition for tax purposes I have a loss. However, as per CRA rules, you cannot claim a loss for a transfer of "in kind' stock from non-registered to registered accounts.

The problem I am having is figuring out how to fill out Schedule 3 of my tax return since I cannot claim the loss. Do I just not include it on Schedule 3? Otherwise the app I am using is automatically calculating the loss offsetting the gains I have on other non-registered investments. I find it odd to not include it at all on Schedule 3 because my online CRA account shows the disposition so wouldn't that raise a red flag?

Hopefully someone knows what I should do.

Thanks!
 

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My understanding is that you shouldn't include it. It will not raise a red flag with the CRA, since you are not claiming a loss which means you are paying more taxes. Of course if they specifically ask about it, you can send them a note that explains the situation.

You could have avoided this situation by selling the stock, transferring the funds to the RRSP, and then buying a similar stock, or the exact same stock a month later. I believe the loss tax benefit has been permanently lost, unless the transaction can somehow be reversed.
 

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My understanding is that you shouldn't include it. It will not raise a red flag with the CRA, since you are not claiming a loss which means you are paying more taxes. Of course if they specifically ask about it, you can send them a note that explains the situation.

You could have avoided this situation by selling the stock, transferring the funds to the RRSP, and then buying a similar stock, or the exact same stock a month later. I believe the loss tax benefit has been permanently lost, unless the transaction can somehow be reversed.
Thanks for the help Topo, I am an employee of WestJet, the transfer was @ 18.99 a share with a higher ACB. Of course, months later we were bought out @31.00. Waiting a month was not feasible.
 

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Thanks for the help Topo, I am an employee of WestJet, the transfer was @ 18.99 a share with a higher ACB. Of course, months later we were bought out @31.00. Waiting a month was not feasible.
Thankfully you have recouped some of your losses even though you did not get to use the tax write off.

I guess a similar stock would have been AC or maybe an American airline in this instance. I generally invest in index ETFs, so it is not difficult to find a relatively similar, but at the same time different index. An example would be XIU and XIC, which would track each others' movements closely in the short term.
 
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