HOW TO TRANSFER A STOCK INTO MY TFSA IN QUICKEN 2019 HOME + BUS

2trollope

TRYING TO TRANSFER A STOCK INTO MY TFSA ACCOUNT

Tom Young

(You might want to click on the "Caps Lock" key as typing in all caps generally comes across as SHOUTING, indicating I'M MAD AS HELL!)

I assume that you have a stock in one of your Quicken Accounts - probably some tax-deferred account under Canadian laws - and you want to transfer this stock to your TFSA as allowed by Canadian laws. Laboring under the assumption that "Canadian" Quicken is pretty much the same as United States Quicken I'd say the correct way to do this is to use the "Shares Transferred Between Accounts" action in the "from" Account.  That should result in one "Removed" action in the "from" Account - leaving no shares of the security in that Account - and multiple "Added" actions over in the "to" Account, one for each lot of the security transferred.

That will result in the "to" Account having the correct cost basis information.  The original transactions that resulted in the lots that were transferred will remain in the "from" Account, as they should, since that's the Account where all the action took place.

Chris Sowerby

I prefer to "sell" the stock in the non-registered account then transfer the cash proceeds to TFSA and re-buy the stock in that account. When you actually transfer shares to a TFSA, it creates a deemed disposition at current market value for tax purposes anyway. This way the book value in your TFSA will be a more appropriate reference for future gains.

Tom Young

The assumption here, not refuted by the OP, was that the transfer of stock was from one tax-deferred ("registered") account to another tax-deferred account.  If the transfer actually took place from an after-tax account to a tax-deferred account then, yes, that's deemed a sale.

Tom Young

(You might want to click on the "Caps Lock" key as typing in all caps generally comes across as SHOUTING, indicating I'M MAD AS HELL!)

I assume that you have a stock in one of your Quicken Accounts - probably some tax-deferred account under Canadian laws - and you want to transfer this stock to your TFSA as allowed by Canadian laws. Laboring under the assumption that "Canadian" Quicken is pretty much the same as United States Quicken I'd say the correct way to do this is to use the "Shares Transferred Between Accounts" action in the "from" Account.  That should result in one "Removed" action in the "from" Account - leaving no shares of the security in that Account - and multiple "Added" actions over in the "to" Account, one for each lot of the security transferred.

That will result in the "to" Account having the correct cost basis information.  The original transactions that resulted in the lots that were transferred will remain in the "from" Account, as they should, since that's the Account where all the action took place.

2trollope

Thanks

Chris Sowerby

I prefer to "sell" the stock in the non-registered account then transfer the cash proceeds to TFSA and re-buy the stock in that account. When you actually transfer shares to a TFSA, it creates a deemed disposition at current market value for tax purposes anyway. This way the book value in your TFSA will be a more appropriate reference for future gains.

Tom Young

The assumption here, not refuted by the OP, was that the transfer of stock was from one tax-deferred ("registered") account to another tax-deferred account.  If the transfer actually took place from an after-tax account to a tax-deferred account then, yes, that's deemed a sale.

Chris Sowerby

For clarification, the Canadian TFSA is a completely tax-free investment account, with an annual contribution limit of after-tax funds. Even a transfer from a tax-deferred account (RRSP) would require a sale and re-buy because it represents a taxable withdrawal (at market value) from the tax-deferred account .