Quote:
Originally Posted by SeeGeeWhy
Can you use up your contribution room by transferring in securities that were held outside of a registered account before?
I'm assuming that you can, and that your ACB of the contribution would be based on the current market value (not the book value).
For example, I hold 1000 shares of ABC that I purchased for $5/share in 2006, but are now trading for $10/share. If I would like to use up my TFSA contribution room by transferring in these shares, I would only be able to move 500 of the 1000 into the TFSA (500 * $10/share = $5000).
Is this scenario legit, and if so... are there any tax consequences to doing so? I'm assuming you'd have to pay tax on the capital gains ($5/share on the 500 shares transferred) when doing this.
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just make sure that the are qualifying investments before you do it. There is a huge penalty for fataing up TSFAs (20% + 1% each month they're in there).