Redeem shares
Redeeming your shares is easy. See how and learn about the tax considerations.
Redeeming shares after 7 years
Once you've held your shares for at least 7 years, you can opt to keep them or you can redeem them if you no longer wish to take advantage of the tax credit related to buying new shares or making an exchange.
Minimum holding period and consequences of redeeming shares
The minimum required holding period for CRCD shares is seven years to the day from the date of purchase. For that reason, buying the share should be considered a long-term investment.
When you ask to redeem shares after the mandatory seven-year holding period, you can no longer claim a tax credit for the current tax year or any subsequent tax year.
So, if you ask to redeem your shares during the 2020 issue, you will not be able to claim the tax credit for the 2020 tax year and subsequent years.
At the date your shares become eligible to redeem, you can opt to keep them or to redeem them.
A caisse advisor can help you make your decision based on your investment profile and your plans.
Maximum holding period for shares acquired after March 1, 2025
For shares acquired after March 1, 2025, the holding period must be a minimum of 7 years and a maximum of 14 years.
Shares acquired before this date are not subject to a maximum holding period.
Asking to redeem shares held for at least 7 years
If you are a Desjardins member, you can ask to redeem shares on AccèsD. The redemption amount will be deposited directly to your account.
Log in to AccèsD
On the AccèsD overview page, select the Savings and investment tab.
Under Capital régional et coopératif Desjardins, click Options and then select Apply for share redemption after 7 years.
Complete your request as instructed.
If you are not a Desjardins member contact an advisor to find out what options are available to you.
Requests to redeem shares may be made in person at your caisse, by mail, by email, by phone or by fax.
Fill out and sign the redemption instruction form.
You can opt to have your payment deposited directly into your account or receive a cheque by mail.
Notes
CRCD shares are not guaranteed. Their value and returns vary, and past performance is not indicative of future returns. Investment fees may apply. Please read the prospectus before investing.
Exceptions for redeeming shares earlier than 7 years
The minimum holding period for shares of CRCD is 7 years. However, in certain exceptional cases, you may request that your shares be redeemed or purchased by agreement by CRCD before the redemption eligibility date.
To do this, you must show proof that you meet the requirements for the exception you are requesting.
Within 30 days of subscribing
Requirement
Must have acquired the share or fractional share from CRCD.
The request for redemption must be signed by the shareholder and addressed to CRCD within 30 days of the subscription date.
Proof required
Nil
No tax credit (shareholder has not received the tax credit)
Requirement
Must have subscribed for shares without being entitled to the tax credit in respect of such shares, provided that the shareholder’s spouse has not benefited from the transfer of the unused portion of the tax credit with respect to buying the shares.
Proof required and comments
Copy of Québec income tax return and notice of assessment or other document issued by Revenu Québec indicating the value of tax credit granted to the shareholder for the year in which the shares were purchaesd.
AND
In the event that the shareholder had a spouse at the end of the year in which the shares were purchased, the notice of assessment or other document issued by Revenu Québec indicating the unused portion of the shareholder’s tax credits which has been used to reduce the spouse’s income tax payable for the year.
Death
Requirement
The request to redeem shares must be made to CRCD.
Proof required
Proof of death of the shareholder (attestation of death by a physician, or death certificate from a funeral director or copy of the act of death issued by the government).
AND
Original or true copy (certified photocopy) of the will (will search and probate may be required) or marriage contract if it contains a testamentary provision or, failing the above documents, a sworn declaration of transmission by death.
Severe and permanent mental or physical disability preventing the shareholder from working
Requirement
Must have become disabled after the shares were issued.
If the shareholder is under 60:
Must be regularly incapable of holding any substantially gainful occupation.
If the shareholder is 60 or over:
Must be regularly incapable of pursuing the substantially gainful occupation held at the time the shareholder ceased working owing to the disability.
The request to redeem shares must be made to CRCD.
Proof required
Proof of substantially gainful occupation held.
AND
Notice of acceptance as disabled contributor by the Régie des rentes du Québec.
OR
Declaration signed by the shareholder and the shareholder’s physician regarding the shareholder’s severe and permanent disability.
Emigration from Canada
Requirement
Must have emigrated permanently from Canada.
Proof required
Visa or immigration certificate for another country.
AND
Copy of lease or deed of purchase of a residence outside Canada or proof of employment in another country.
Terminal illness
Requirement
Must be suffering from a terminal illness.
Proof required
Confirmation from attending physician.
Urgent need of cash
Comments
To pay an extraordinary and unforeseen expense required for the health of the shareholder or one of their dependants.
OR
To replace essential property destroyed or damaged du to a loss event and for which the shareholder has received no compensation.
Requirements
Must be in an urgent need of cash.
AND
Must have sold other liquid investments (the sale of the shares being a last resort).
AND
In the case of an extraordinary and unforeseen expense, must have incurred it for the health of the shareholder or one of their dependents.
In the case of replacement of essential property, must have suffered a loss event that destroyed or damaged the property.
Proof required and comments
Declaration proving the financial situation of the shareholder and, if applicable, of their spouse (family income, expense and net worth).
AND
Proof that liquid investments have been sold.
AND
In the case of an extraordinary expense, proof of the expense and proof of its unforeseen nature and that it is required for the health of the shareholder or, as applicable, for the health of any of their dependants. In the case of replacement of essential property, proof of the loss, the essential nature of the property and the absence of compensation.
Making a request to redeem shares earlier than 7 years
All requests for exceptions must include all relevant proof and documents and be addressed to CRCD in writing at the following address:
Capital régional et coopératif Desjardins
2 Complexe Desjardins
P.O. Box 760, Desjardins Station
Montréal, Québec H5B 1B8
Or by email: capital.regional@desjardins.com
How long does it take to redeem shares under an exception?
If the request is accepted, the delay for redeeming shares is generally no more than 30 days after receipt of all of the required documents.
Tax considerations of redeeming shares
For tax purposes, redeeming shares implies disposing of the shares. Accordingly, a capital gain or loss may occur, and both are taken into consideration for federal and Québec income tax purposes.
Declaring a gain or loss for tax purposes
In brief
For tax purposes, redeeming shares implies disposition of the shares. Accordingly, redeeming shares may give rise to a capital gain or loss. In short, a capital gain is taxable under normal tax rules, while a loss for tax purposes must be reduced by any tax credit already obtained. You do not have to repay the tax credit you obtained for buying the shares.
These rules apply for both federal income tax (see line 12700 of the Income Tax and Benefit Return and Schedule 3) and Québec income tax purposes (see line 139 of the Income Tax Return and Schedule G).
In detail
You may realize a capital gain or loss if the price you obtain when you redeem shares differs from the adjusted cost base (tax cost) of the shares, and both a gain or loss are taken into consideration for federal and Québec income tax purposes. Adjusted cost base (tax cost) is the average cost of all the shares you have bought and still hold at the time of the disposition.
Capital gain for tax purposes is the difference between the price you receive on redemption (disposition proceeds) and the adjusted cost base (tax cost) of the shares redeemed or purchased by agreement. For purposes of determining a capital gain, the tax credit you obtained for buying the shares does not reduce the adjusted cost base (tax cost) of the shares you acquired. The current capital gain inclusion rate is 50%.
Capital loss for tax purposes is the difference between the price you receive on redemption (disposition proceeds) and the adjusted cost base (tax cost) of the shares redeemed or purchased by agreement. This loss will be reduced by the amount by which the tax credit you obtained for the shares you acquired exceeds the amount of special tax paid at redemption or purchase by agreement, as applicable. The adjusted capital loss, as applicable, is deemed an allowable capital loss against any capital gain in the current year, and if a balance remains, against any capital gain during the three previous taxation years and/or future taxation years. The current allowable capital loss rate is 50%.
Sample calculations of capital gain or loss for tax purposes
Special tax
If shares are redeemed before the end of the mandatory seven-year holding period, the tax credit in respect of acquisition of a share is recovered by Revenu Québec through a special tax, prorated to the holding period. Where applicable, the special tax is withheld by CRCD from the amount payable on share redemption.
Tax slip
Investors who have redeemed shares will receive a T5008/RL-18 slip for the appropriate tax year to file their securities transaction.
Notes
This information is only a summary of the main considerations for shareholders. Accordingly, this information is not a tax opinion. You should consult a tax professional to determine the tax consequences applicable to your personal situation or for any additional information.