No.  This type of a loss is treated as a “superficial loss” and your Profit/Loss for the taxable portfolio year-end needs to be adjusted for this “loss”. ( i.e. greater profit/lesser loss).

To record this loss, so that you know the exact amount of your loss without it affecting the balance of these securities held:

  • Break off the number of securities being contributed to the RRSP or TFSA and record them as a separate security.
  • Sell the contributed shares from existing inventory at their moving average cost, and buy into the newly created security at that price.
  • Sell these newly created shares at the market price that was used for the contribution.

This will then create the exact loss on the security and identify the amount needed to be added to your profit or deducted from your loss for tax purposes.

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