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229 Posts
Hi all,
So I have some securities held outside TFSA which was bought earlier this year. And it's time for me to contribute into this year's TFSA. I think I am allowed to make in-kind contribution (transfer from non-registered into TFSA in terms of the security) and I think the value of the security that get transferred into TFSA will be based on the current market price. This mean I'll have some "capital gain" although I dont exactly sell the security directly. But does this mean I need to pay the capital gain tax?
If so, consider the case where I have $5,000 cash that I can put into the TFSA right now. But it's likely in the next few months I'll need that $5,000 cash for something else.
Would it be better:
- transfer securities from non-registered to TFSA and keep the cash I have
- put in the cash into TFSA, and when I need that money later this year, sell some of the securities I'm holding
also, in general, is it a good idea to transfer securities into TFSA rather than cash? or is there no exact answer to such question?
Thanks!
So I have some securities held outside TFSA which was bought earlier this year. And it's time for me to contribute into this year's TFSA. I think I am allowed to make in-kind contribution (transfer from non-registered into TFSA in terms of the security) and I think the value of the security that get transferred into TFSA will be based on the current market price. This mean I'll have some "capital gain" although I dont exactly sell the security directly. But does this mean I need to pay the capital gain tax?
If so, consider the case where I have $5,000 cash that I can put into the TFSA right now. But it's likely in the next few months I'll need that $5,000 cash for something else.
Would it be better:
- transfer securities from non-registered to TFSA and keep the cash I have
- put in the cash into TFSA, and when I need that money later this year, sell some of the securities I'm holding
also, in general, is it a good idea to transfer securities into TFSA rather than cash? or is there no exact answer to such question?
Thanks!