How to sell a US listed equity in a cdn TFSA account?

Hello, I had purchased fire and flower stock (on the TSX) a while back; it now is bankrupt. It’s value in my tfsa account shows $31.80. I have attempted to sell it, however, it appears the stock has converted to a US equity. I receive the following message(s) when trying to sell: (1) “You are attempting to buy or sell a security that may be non qualified in a registered account. CRA penalties may apply.” (2) “Note. You are placing an order on a USD denominated security to be settled on your CAD account. A real-time conversion will be required. Real-time conversion cannot be cancelled or reversed.”
What is the best course of action here?

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Asked on January 2, 2024 10:22 am

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Hey there,

I think you will need to contact your broker. I have a USD account, so for me when I sell a US stock, the proceeds just go into my US account. Based on the message you are getting, It sounds like when you sell the stock, the proceeds will just show up in your CAD account. You'll likely be charged a currency conversion fee as well.

That said, I'm not even sure you can sell that company cuz it no longer exists from what I can tell. There is no volume on the pink sheets at all. I think that is the warning issued with respect to it 'not being non-qualified in a registered account." I think this is a complete loss now. You could contact your broker to make sure, but as far as I can tell - you likely have no equity in Fire and Flower anymore as they entered bankruptcy. You can see details here:

http://cfcanada.fticonsulting.com/fireandflower.

Mat

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Posted by Mathieu Litalien

Answered on January 4, 2024 7:33 am

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