another cross

all these crosses got me thinking of my RRSP Vs. non registered accounts.

Fact is, one does not want to get too much money (eg 500k +) in their RRSP as it eventually ALL gets taxed. Outside of your RRSP, it's at a 50% inclusion rate then at your tax rate.

I'm thinking of borrowing and buying outside my RRSP and selling some from my RRSP at same price or slightly higher. The interest is tax deductable, the taxable gain included into income at only 50%, and worst case scenario any losses can be deducted from other capital gains.

Only down side is, when (if) SGR gets bought out, the large capital gain that could occur would be in one tax year but now at the highest marginal tax rate.

If the deal was done such that we received shares in the new combined company then the gain would be defered till you sell the shares over several tax years. Is this likely ??

any comments ?

Cheers