Dear Expert:
I have not made my maximum RRSP contribution over the past several years. Can I use some of the securities that I already own as part of an RRSP contribution? How does this work? Are there any tax implications?
Expert Opinion:
You can transfer securities that you own to an RRSP and receive an RRSP contribution receipt for the fair market value of the securities on the day of the transfer. This is known as a "contribution in kind." Note, however, that any accrued capital gain on the transferred securities on an in-kind contribution to an RRSP is immediately taxable to you, while any loss on such a transfer would be denied from being claimed as a capital loss.
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