Transfer shares from margin to TFSA

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Hello,

To fill up my TFSA contribution room for 2021, I want to transfer my BAM.A and BIP.UN holdings from my margin account. I don’t want to transfer at a loss, but would you advise getting as close to the average cost (+ trading fees) as possible? My thought behind this is that if I transfer close to my purchase price, then there will be more room to grow in my TFSA. I can then top up any additional space with cash to buy more shares. Your advice is most appreciated. Thank you.

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Asked on January 13, 2021 8:40 pm
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So, if you're transferring fairly close to your adjusted cost base (average price) I really don't see anything wrong with this. The appreciation and dividends will now be tax free inside of your TFSA.

Just know that if you transferred them ABOVE your adjusted cost base, this counts as a capital gain even if you transfer them in kind into your TFSA. And, if you're transferring them in at a lower price, you're NOT allowed to claim the capital loss.

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Posted by Dan Kent
Answered on January 13, 2021 9:43 pm
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