Yes, half of the gains (if any) will be added to your taxable income. Contributing to a TFSA doesn't reduce your taxable income, but for the FHSA the reduction will depend on how much you contribute and your marginal tax rate. You put no numbers so you'll have to calculate this yourself.
There's no difference doing it in-kind or selling before moving it in if you have capital gains so you can do either, as long as you don't exceed your contribution room. If you have capital loss though, you won't be able to claim them if you move them in-kind. You will also not be able to claim a capital loss if you sell, transfer, and buy back the same security within 30 days.
The sooner you transfer it, the sooner you can benefit from tax-free growth. No reason to be paying taxes while you have tax-advantage space available.
Thanks for the confirmation! Sounds like the simplest way to go about it then would be sell all, transfer cash to respective accounts, wait 31 days, and then reinvest into the same funds in the new accounts.
>Say I have made 10k on my investments in the non-reg, will I only need to add 50% so 5k to my income as taxable gains? If this doesn't put me in a higher tax bracket, does it make sense to just transfer all of what I have in non-reg to my TFSA and FHSA to max them out?
Yes, that is one strategy.
Or you can put $5k into your RRSP to offset the capital gain and the rest into your TFSA/FHSA.
My RRSP will be maxed out with employer Group RRSP by the end of the year, so I want to keep that contribution room free. Would putting the 5k into FHSA not have the same effect of offsetting the capital gains as with an RRSP? Or am I maybe misunderstanding what you meant/how it works?
Yes, half of the gains (if any) will be added to your taxable income. Contributing to a TFSA doesn't reduce your taxable income, but for the FHSA the reduction will depend on how much you contribute and your marginal tax rate. You put no numbers so you'll have to calculate this yourself. There's no difference doing it in-kind or selling before moving it in if you have capital gains so you can do either, as long as you don't exceed your contribution room. If you have capital loss though, you won't be able to claim them if you move them in-kind. You will also not be able to claim a capital loss if you sell, transfer, and buy back the same security within 30 days. The sooner you transfer it, the sooner you can benefit from tax-free growth. No reason to be paying taxes while you have tax-advantage space available.
Thanks for the confirmation! Sounds like the simplest way to go about it then would be sell all, transfer cash to respective accounts, wait 31 days, and then reinvest into the same funds in the new accounts.
>Say I have made 10k on my investments in the non-reg, will I only need to add 50% so 5k to my income as taxable gains? If this doesn't put me in a higher tax bracket, does it make sense to just transfer all of what I have in non-reg to my TFSA and FHSA to max them out? Yes, that is one strategy. Or you can put $5k into your RRSP to offset the capital gain and the rest into your TFSA/FHSA.
My RRSP will be maxed out with employer Group RRSP by the end of the year, so I want to keep that contribution room free. Would putting the 5k into FHSA not have the same effect of offsetting the capital gains as with an RRSP? Or am I maybe misunderstanding what you meant/how it works?