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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (3082)	5/3/1999 12:02:00 AM
From: Buckey	Read Replies (1) \| Respond to of 4467

OK sell it to your self - That is what I was missing - Gotcha

To: keith massey who wrote (3082)	5/3/1999 1:12:00 AM
From: VisionsOfSugarplums	Read Replies (1) \| Respond to of 4467

<<Buy the 4,000 at $1.01 in your cash account>> <<Sell it to yourself in your RRSP account at $2. You now have $4000 extra in you cash account (minus commission). >> Don't forget, you now have a ($2 swap price - $1.01 cost base) = $0.99/share gain in your cash account, which is taxable. The only difference this method provides is that you effectively withdraw the cash from your RSP without witholding tax. However, if you are subject to instalments, you may then have to pay tax on this gain in your cash account thru instalments (unless you have some losses to offset it against). In addition, you have taken a real $ loss by selling the stock at a price lower than you bought it at and you paid commissions on the transaction. <<It is not easy to pull off and there is some risk with pulling it off >>. If by this you mean that in this example you haven't reported the gain in your cash account, there is definitely a risk (re-assessment, penalties, interest). The penalties and interest can really add up. Regards, t.