Transfer shares in-kind between Wealthsimple accounts

In this article:
Note: This article covers in-kind share transfers between Wealthsimple accounts. For information about cash balance transfers between Wealthsimple accounts, please review this article.

Overview

An in-kind transfer moves your assets exactly as-is between two accounts without converting them to cash. Depending on the transfer, there can be tax implications. 

Tax free

In-kind transfers between accounts of the same type with the same owner are tax free.

Assets are transferred at their book cost from one account to the other and there are no associated tax implications.

Taxable

We transfer assets between accounts based on their current market value. Because of this, transferring from a non-registered to a registered account may trigger capital gains taxes.

After the transfer, the asset's book cost in the new account is updated to reflect its current market value. This affects how much tax you might pay when you sell those assets in the future.

Note: We use the latest available bid price and foreign exchange rate to transfer assets in-kind.

Before you begin

You can only complete in-kind share transfers between your Wealthsimple accounts on the mobile app. Before you start your transfer, please consider the information below, including reviewing assets that are not eligible for transfer.

Tip: You can transfer a CAD cash balance of any amount from one of your Wealthsimple accounts to another if you don’t want to move forward with an in-kind transfer. Learn more.

Eligible accounts

Supported transfers in the Wealthsimple app

You can only transfer shares in the Wealthsimple app from a Personal non-registered account to one of the account types below in the Wealthsimple app:

  • TFSA
  • RRSP
  • FHSA
Note: You can’t transfer shares
  • to or from managed, crypto, or Cash accounts,
  • between two personal or joint non-registered accounts, or
  • from joint non-registered accounts to any other account type.

Learn more about tax implications for transfers to registered accounts below. 

Transfers requiring the Client Support team's assistance

Contact our support team if you want to:

  • transfer shares from your TFSA to your RRSP, FHSA, or non-registered accounts, or
  • transfer NQI assets.

These transfers are processed manually. Due to this, we use the previous end-of-day close price and end-of-day foreign exchange rate to transfer the in-kind assets. The in-kind assets are transferred using the previous end-of-day closing price of the assets.

Learn more about tax implications for transfers from a TFSA to a non-registered account below. 

Tax implications 

Tax implications for in-kind transfers to registered accounts

Moving shares from a non-registered account to a registered account (for example, TFSA, RRSP, etc.) are treated as a contribution to the registered account. There will be tax implications for unrealized gains.

Transferring stocks showing a loss
If you hold stocks showing a loss in a non-registered account and you transfer them in-kind into your registered account, you can’t claim a capital loss. Learn more.

Transferring stocks showing a gain
If you transfer stocks with unrealized gains, the Canada Revenue Agency considers this a deemed disposition, and you will be responsible for reporting and paying tax on the capital gains. Learn more.

Example: Suppose you transfer 100 shares of XYZ in-kind from a non-registered (personal) account to a tax-free savings account (TFSA). Let's assume the price of the shares is $100 on the date of the transfer. The CRA will consider the shares to be sold at $100, even though there was no physical sale. You would then have to pay tax on the capital gains. As a result, your average cost in the new account would be different.

Transfers from a TFSA to a non-registered account

Note: These transfers are done manually with the help of our support team. You must contact us for help with this kind of transfer. 

Moving shares in-kind from a TFSA to a non-registered (Personal) account are treated as a withdrawal. This is also called a redemption. We send redemption information for TFSAs to CRA during tax season.

Moving shares out of a TFSA means losing contribution room for the year based on the total market value of all stocks combined. You will receive the contribution room back in January of the following year.

Assets not eligible for in-kind transfers

The assets below aren't supported for in-kind transfers:

  • NQI assets
  • Security not active
  • Assets on loan
  • Asset status is not trading (for example, delisted, halted, suspended, undergoing corporate action)
  • Asset type is anything other than equity or exchange traded fund (for example, cash, bonds, mutual funds, crypto, options)
  • Securities not supported for fractional trading

Submit an in-kind share transfer

Before you submit an in-kind transfer, please review the following information:

  • Moving shares from a non-registered account to a registered account are treated as a contribution to the registered account
  • Your trades must settle before you can transfer your shares
  • Transfers can’t be reversed
  • Transfers take 1 business day to complete

How to submit an in-kind transfer

Follow the steps below to make an in-kind share transfer:

  1. Sign in to the Wealthsimple app on your mobile device
  2. From the Home tab, select your desired non-registered account to transfer shares from
  3. Scroll down and tap Transfer holdings in-kind
  4. Select the account to transfer the holdings to, then tap Next
  5. Choose if you’d like to transfer CAD or USD holdings, then tap Next
  6. Review the information about tax implications, then tap Next
  7. Enter the dollar value of each holding you’d like to transfer
  8. When you’re done, tap Review
  9. Tap Submit to confirm the in-kind transfer
Note: The transfer takes 1 business day to complete.

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