Weekly Tax Tip - Sell non-qualified assets in your RRSP before December 31

November 20, 2017


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, referred to as non-qualifying investments. For such assets acquired after March 22, 2011, a tax equal to 50% of the amount of such investment will apply to the RRSP annuitant. Where the non-qualifying investment is disposed of, the tax will be refunded if certain conditions are met. If the purchase and sale are in the same year, the tax and the refund will generally be offset. For these acquisitions, it will be beneficial to dispose of the non-qualifying assets before December 31, 2017. Speak with a trusted BDO tax advisor today for personalized advice.

This tax tip is a publication of BDO Canada 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 November 20, 2017.