Noront Resources

Your accountant has misinformed you. An in-kind transfer of any security into an RRSP or TFSA is called a deemed disposition. What that means it is as if you sold it at for cash outside the sheltered account, transferred cash, and bought it back again at the same price. If your Average Cost Base was less than the deemed disposition valuation, then you have a capital gain, and it must be reported even though you realized no money from the transfer. If your ACB was higher, you cannot claim a capital loss. It is considered abandoned.

So, the gentleman who initially posed the question has a reportable capital gain of the the difference between his ACB and the actual transfer price. By picking the daily low, he was able to shelter the greatest number of shares, and simultaneously minimize the reportable capital gain on a per share basis. He did just the right thing, under the circumstances.

Lar