Can anybody comment on the following two quotes. Does the thirty day rule apply? Can you sell the stock and contribute the money to the TFSA, rebuy the stock (in less than thirty days) and get to keep a tax loss as opposed to losing the tax loss if you contribute "in kind"? Sorry about the OT but there must be lots of people wrestling with this problem.

From TD Waterhouse

Q. Can I make a contribution to my TFSA by transferring property "in-kind"?

A. Yes. TFSA contributions can be made by transferring property "in-kind" provided the property is a qualified investment and not a prohibited investment. The amount of the contribution will be equal to the fair market value of the property at the time of the transfer. The property will be deemed disposed at the time of the transfer and any capital gains will be realized, but any capital losses cannot be claimed.

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From Gordon Pape

Question: Ok, so, I’m all excited about contributing to a new TFSA (Tax-Free Savings Account) in January by transferring in an equity now held in my non-registered account. But wait, will the Canada Revenue Agency view this transfer as a deemed disposition of the stock and require me to pay capital gains on any profit made? – Eric M., BC.

Gordon Pape answers: Yes they will. The same rules apply as with RRSPs in this regard. And do not make the mistake of transferring a losing stock to a TFSA as the capital loss would not be allowed in that situation. Sell the stock first and contribute the cash.