RE:RE:RE:ExplanationSay you 1000 share of company X and it's in your cash account. You bought it at $10, so its value at purchase was $10,000.
Parallel to your ash account, you have an RRSP and TFSA.
As the year approaches, say the price has dropped to $3, giving it a value of $3000.
You can move those share into your TFSA but the transaction is seen as a 'sale' you then rebuy under the TFSA.
In that scenario, you moved the 1000 shares unto your TFSA with a $3000 contribution added to your contribution history. You also can claim a Capital Loss for the $7000 from the 1000 shares sold to yourself.
Then, after a rebound, all gains are tax-free under the TFSA or RRSP.
I think you have to wait a while before you rebuy or something so that the capital loss is legit.
martyinvestor wrote: How does this work?
for example if I am negative in my canadian cash account, I sell at a loss and then I claim it come income tax season? Am I allowed to buy back in? Etc
cant find any good answers online
cheers!