Canadian Investment & Retirement Roadmap

Question 01/10

You have a stock in your Cash account with an ACB of $5,000, but it is currently worth $4,000 (a $1,000 loss). You transfer it "In-Kind" directly to your TFSA. What happens to that $1,000 loss?

You can use the $1,000 loss to offset other capital gains this year. The $1,000 loss is added to the ACB of the shares inside the TFSA. The loss is "denied" under the Superficial Loss Rule and vanishes forever. The CRA sends you a refund for the $1,000 difference.