Nelson from Cambridge, Ont writes about Tax Free Savings Account:
What are your thoughts on TFSA that was introduced in the beginning of ’09?
Is there any strings attach? Kind of sounds to good to be true. Any help will be appreciated.
Hi Nelson,
I know its hard to believe but the Tax Free Savings Accounts that came into being in January are not too good to be true they are too good to be missed!
Any resident of Canada 18 years of age or older can sock $5,000 a year into this shelter and get tax free growth on their assets regardless if the growth comes from capital gains, interest, or dividends. If you are interested in other types of investments such as options and futures you would best be served asking your accountant for clarification as to eligibility.
The link below will give you most of the information you need directly from the Canada Revenue Agency.
http://www.budget.gc.ca/2008/pamphlet-depliant/pamphlet-depliant2-eng.asp
Make the most of this opportunity to grow wealth tax free.
Happy Capitalism!
Hi Lou,
I attempted tp go to the link listed above however it keeps coming back as not abble to find.
Is there another link you can refer me too?
Thanks,
Sandra
here you go:
http://www.budget.gc.ca/2008/pdf/pamphlet-depliant4-eng.pdf
Your article mentioned about capital gain without touching on capital LOSS. The link to CRA was no help either. I heard recently that capital loss within TFSA cannot be used to offset your non-TFSA capital gain elsewhere. With interest rate at all time low, the only way to grow your wealth is to put your money in stocks for capital gain and/or dividends. But then you run the risk of losing your shirt with capital loss. One would argue that it is no different from RRSP. However, contribution to RRSP is tax deductible but not TFSA! As in real life, there is no free lunch. TFSA should be called TFGA, Tax Free Gambling Account.