TAX QUESTION

I know any discussion about taxes is inherently boring but I’m appealing to my Canadian readers to see if they can answer a question I have. I wondering if anyone has used a tax-free savings account and transferred common shares in that account. I know it’s possible but I’d like to know the exact process in getting that done.

Specifically, I’d like to transfer some of my EA stock into a TFSA. It’s my understanding that any money that comes from selling my shares is not taxable. I think. The thing that might complicate this is that EA stock is not Canadian. It’s traded on Nasdaq which is an American market. I don’t know what the rules are for foreign contributions to a TFSA. Also, I wonder if E*Trade, being an American company would even care if I wanted to transfer some of the shares over to a Canadian account. Can they even do that?

If anyone can answer even just a few of my questions, I’d appreciate it. I promise tomorrow I’ll find a way to bore you without resorting to financial talk.

2 thoughts on “TAX QUESTION”

  1. Hmmm, i’m not so sure about that. I believe any profit from the sale of shares is considered capital gains and is taxible. I have an excellent strategy for avoiding capital gains: sell a large volume of shares at a loss. That way you’ll have negative capital gains to offset any money you make on the EA shares! Simple.

    My financial planner has pointed out that my strategy may be somewhat flawed, so you may want to see other advice.

    As far as moving it into the TFSA, I’m not sure what the deal is with shares. I know I moved a bunch of unregistered mutual funds into my TFSA without any trouble. I would think that shares would be similar.

    If you want the name and number of a good financial planner, let me know and I’ll hook you up.

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