You use the price it was trading at on the day you transferred the stock into the TFSA..

If the Pp was done in your " Cash account" Here are a couple examples.

PP @ .50 with a wt @ .75 taken in your Cash account. Lets say you did $10,000 in the PP and have 20,000 shares and 20,000 wts

You decide to roll it into you TFSA having enough room to do the transaction.

Lets say this is your initial $5000 contibution. The stock is trading on that day at .49

Therefore: You can deposit 10,000 shares into the account and since the wts are out of the money you can transfer them in as well. My broker calculates the Black shoals price of the wts on the day of the transaction. Lets say they come in with a value of .005 cents... Therefore the 20,000 wts have a value of $100.

This would be you total contribution for the year.

Taxes: For the purpose of taxation these shares are deamed sold on that day, for a .01/ share loss and the wts making up the balance for a neutral trade.

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2nd example.

The stock PP transaction being the same except the shares are now $.75 Thus the contibution limit of $5000 would only allow a contribution of 6666 shares and the wts being in the money, the Black Schoal value would be higher than the neutral which appears to be the value.

One additional problem occurs with wts in the TFSA in that they do not allow you to short sell against the wt.... Same as an RRSP now. I had some SGR wts in mY TFSA and I mentioned previousely that when I exercised them I did it via an equity swap with my cash account. I transferred in the value equivilant of the BS value of the wts thus the additional value contibution via the swap into my TFSA.

The wts were then exercised in my cash account.

You