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I recently opened a TFSA at my discount broker and they transfered the $5000 from my trading account in the form of stocks. They informed me that they will be transfering the stock direct at the lowest price of the day which resulted in a loss of approx $1000 to my trading account.

Just wondering if any one has any knowledge if this will count as a capital loss at the end of the year or how it will play out in the end??

If so it will result in a double bonus :
1. Claimable Capitol Loss
2. Instant gains in the TFSA as the share price had dipped to a low of 20% and returned to regular price by days end
 

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Just wondering if any one has any knowledge if this will count as a capital loss at the end of the year
No. You cannot claim a capital loss that you generate when you contribute in-kind to any registered account (RRSP, TFSA, RRSP). The ability to claim a loss like this is specifically prohibited in the ITA.
 

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If GregR had contributed securities to his TSFA at a price above his ACB, he would have generated a taxable capital gain from the deemed disposition. This is yet another asymmetry of the income tax act.
 
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