Comments on: Ideas for your Tax-Free Savings Account (TFSA)

By: david

david — Wed, 23 Nov 2011 18:28:01 +0000

Thanks for pointing out that CR doesn’t care about what happens in the account. I was worried about that because I’ve been trading it a lot and have never mentioned it to my accountant.

By: Canadian Capitalist

Canadian Capitalist — Tue, 17 May 2011 03:18:06 +0000

@ccs: The answer to your first question is “No”. Your contribution room, which you can check with the CRA through “My Account” is $5,000 because you’ve already used up $10,000 in contribution room.

What matters for a TFSA is what you put in and what you take out. CRA doesn’t care about what happens within the account.

Another point: don’t forget that you have capital gains taxes owing on your TFSA contributions because your shares increased in value from $0.50.

PS: Usual disclaimers apply. Always do your own due diligence.

By: ccs

ccs — Mon, 16 May 2011 22:29:14 +0000

I recently started my first TFSA. I was entitled to contribute a max of $15,000 thiis year. Early in the year $10,000 in shares was moved in to the TFSA at a declared value of $1.70. I wish to top up the TFSA this year with an additional $5000 of shares the shares to day have a declared value of $1.20. There will be capital gains on both groups of shares since they were purchased at @.50

My questions are:

1. The value of the TFSA has gone down since it was originally opened can I contribute more than the $5000 contribution remainng for this year?

2. How does REV CAN determine the actual net worth of the TFSA if the shares go down, or does it matter at all to them?

By: The Advantages of RRSPs over TFSAs | MoneySense

The Advantages of RRSPs over TFSAs | MoneySense — Wed, 26 Jan 2011 13:15:10 +0000

[...] Ideas for your Tax-Free Savings Account (TFSA) [...]

By: e.g

e.g — Tue, 16 Feb 2010 07:23:03 +0000

i’ve recently purchased some shares in a co. that hasn’t yet gone public. i’m hoping to transfer the shares into my TFSA…?? hopefully before the co. goes public with an expected increase in the value of the shares. is there anyway i can do this without waiting for the co. to go public registering the cert and then purchasing the stock at the current price through the TFSA account?? or is this the easiest only way to do this…..???

thanks…great site.

By: Mike

Mike — Mon, 18 Jan 2010 00:10:33 +0000

Alfee55:
The option strike price is not the same as the value of the option. When you attempt to move an option, a value will be assigned to it. That value will be the difference between the strike price and the underlying stock price.

In your case $7 per share, $0.90 strike price meanse that each option is currently worth $6.10. You’ll be allowed to move about 819 of your options which will have a total value of just under $5000. At that time there will also be a deemed dispostion and you’ll have to pay tax on the gain you have made to this point.

So in otherwords, no you cannot use the TFSA to screw the government out of their tax money, even though we’d all like to.

By: alfee55

alfee55 — Mon, 14 Dec 2009 22:54:10 +0000

I want to open up a TFSA account and put in $5000 cash.
I would then like to spend my $5000 to purchase 5000 option warrants that I own in my trading account, these warrants are exersisiable at .90 cents a share, allowing me to by the stock at anytime for 2 years of a canadian company.

Once this has been done can I then sell the stock at the market price tax free?
I would then like to sell the stock befor year end, as the stock trades over $7.00 per share.
Is this possible to do?
Open account and deposit $5000.00
Use account to buy non trading warrants for .90 cents per share = $4,500.00.
Sell shares on the stock market for $35,000.00
I have had two opinions already one yes, he says I am paying the full price required .90 cents?
The no says that I would have to take the price of what the stock trades at on the day that I exersise the warants and use that as my purchase price not the .90 cents?
where can I go to get a final YES or NO?

By: Cez

Cez — Sun, 22 Nov 2009 19:40:50 +0000

@Canadian Capitalist

Thank you!

By: Canadian Capitalist

Canadian Capitalist — Sun, 22 Nov 2009 14:32:34 +0000

@Cez: (1) Any growth *within* a TFSA does not affect contribution room assuming no withdrawals are made. In your example, next year’s contribution room is $5,000.
(2) Yes. Your contribution room for next year is $5,040 + $5,000 = $10,040.

By: Cez

Cez — Sun, 22 Nov 2009 05:24:39 +0000

Question for anyone.

Lets say you contributed $5000 on the first month of your TFSA.
You have no more room to contribute and so you let it sit collecting interest.
By the end of the year you collected $50(generalize) in interest.
Now you have $5050. Does that extra $50 effect your contribution room the next year. Meaning you can only contribute $4950 the next year.
Don’t want to over contribute and get penalized for not knowing that the interest collected will effect my contribution limit.

Also say that something happens the 4th quarter of the year and you had to withdraw everything from the TFSA. At the time of withdraw you collected $5040. Will you be able to recontribute $5040 + $5000 the the coming yr?

Any info would be of help.
Thanks!