Q: I have a number of quality companies/stocks in my non registered cash account which are below my initial purchase price. Am I correct that transferring into my TFSA will trigger the capital loss? If so, any down side I should be contemplating? I have sufficient room within the TSFA.
5i Research Answer:
No, this woud not lead to a capital loss because it would be viewed as a superficial loss (the stock in question is still being held). The names in question would still need to be sold and not repurchased within the 30-day period. This article has some god information/context on it:
https://www.moneysense.ca/columns/in-kind-transfer-tfsa-tax/