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  5. BCE: Recently I transferred in kind shares of Bell. [BCE Inc.]
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Investment Q&A

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Q: Recently I transferred in kind shares of Bell. From my unregistered account to a TFSA.They were deemed to be sold at a loss.Can I claim the loss?.And also my shares of MG that are at a significant loss in my TFSA which I if needed to sell .If I transfer them to my nonregistered account will they be deemed to be sold in TFSA and I would not be able to claim the loss? As allways thanks Larry
Asked by Larry on October 11, 2024
5i Research Answer:

While we are not tax experts, BCE shares transferred from an unregistered account to a TFSA would be considered a sell transaction and repurchase in the TFSA. However, if there is a capital loss on those shares, the CRA will consider the loss as a superficial loss (a sale and buyback of the same property within 30 days), which prevents investors from claiming the taxable loss at year-end. Investors can only claim that loss if they wait at least 30 days after selling the shares before buying them again in the TFSA.

As for MG shares, if they are transferred from a TFSA to a non-registered account, it does not matter if it is a gain or loss. Investors cannot claim the loss, as the transaction was considered as a sell transaction in the TFSA (tax free) and repurchase in the non-registered account.