March 1st is the last day you can make a deductible contribution to your RRSP for inclusion on your 2001 tax return. If you are short of cash, you may consider transferring personal investments into your RRSP (referred to as "in kind" transfers) to take advantage of the deduction.

You must have a self-administered RRSP if you wish to continue to hold investments such as stocks, Canada Savings Bonds or mutual fund units within your RRSP. You will be entitled to a deduction equal to the fair market value of the property at the time of the contribution. But keep in mind, you are still subject to the normal contribution limits and the 30% foreign property holding limitation.

In addition, be aware that this type of transfer is treated as a "deemed" sale of the property. As a result, it may trigger taxable capital gains. This procedure is not recommended for investments with accrued unrealized losses since the Canada Customs and Revenue Agency will deny these losses.

With interest rates currently at all time lows, you could also consider borrowing to make your contribution. But remember, the interest will not be deductible.

If you have any further questions, please contact your local DJB office.