Weekly Tax Tips
Sell non-qualified assets in your RRSP before December 31st
13 Nov 2009
There are specific rules as to the types of assets your RRSP can hold. If you have a self-directed RRSP, you may have purchased assets which don’t qualify. When you purchase a non-qualifying asset, the cost of the asset is included in your income in the year of purchase. You’re allowed a deduction for the amount of the proceeds when the asset is sold, up to the original inclusion. Therefore, if the purchase and sale are in the same year, the deduction may offset a part or all of the income. So, make sure your RRSP sells non-qualifying assets before December 31st.
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 13 Nov 2009.
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