Transferring stocks between TFSA RRSP & cash/margin accounts
Coop007, I asked my bank about this. Check yourself to make sure. I never did it because I just went to cash and did it electronically. I hate calling, waiting, being told garbage by entry-level reps that know much less about the markets than I do.
You are able to transfers stocks but the value transferred is at market, not book. And the rep I talked to said there were no costs! That's impossible now that I think about it, these are banks! lol
So let's say that filthy rich Johnny has way too much BTE shares in his TFSA account and the government forces him to trim it to 100K shares.
Johnny can transfer his excess at the market value determine at the time of the transfer. So let's say Monday, stock reaches $5.25, via telephone trading, he transfers 10K shares, that will count as a $52.5K RRSP contribution for 2016.
The rich bugger pays no tax on his TFSA gains and would get a tax deduction from his RRSP contribution. Probably end up being one of the many rich guys who pay zero tax? That seems so wrong?
As that $52.5K climbs to say $250K in a few years in his RRSP, he also starts getting dividends on this and profitability increases and Baytex starts making too much money again.
Johnny will be now have to start paying taxes on that whole tax avoidance scheme the government has put in for us. They really want us to buy into this because god knows, they'll need that tax base in the future!
But if Johnny has done this well up to know, I'm sure Johnny will find a way to maximize his gains to pay the least amount of taxes. lol I have 100% confidence in Johnny based on the wealth of his TFSA account and the fact he's 100% bull on oil and 100% BTE. My kind of guy! "Right"! lol\
Follow the winners, avoid the losers and watch those cycles with the big picture view!