Topic: How To Invest

Q: Pat, I hold Intel in a non-registered account with a capital loss showing and am thinking of transferring it to my TFSA “in kind” with no tax penalty. Is Intel a suitable stock to hold in a TFSA?

Article Excerpt

A: We’re not tax experts, so you might want to consider talking to an expert, especially if there are large funds involved. However, transferring shares in kind into a TFSA does trigger a capital gain or loss for income tax purposes. If the investment is in a capital gains position, you will have to declare it as a capital gain on your income tax return. But if there is a capital loss, you will not be able to declare the loss for tax purposes. This is because the government still sees you as the beneficial owner of the security. Note that if you sell the shares in a non-registered account, you can deduct your loss against capital gains. For example, if you sell your Intel shares this year, 2023, you get to deduct your loss against your 2023 capital gains. If you still have capital losses left over, you can carry them back up to three years (2022, 2021 and 2020), or forward indefinitely…