RE:RE:There are limits to trading in a tfsaThey do try to define what "carrying on a business" is in the article. As for timing of when they decide that I would think it would be when and if you start withdrawing funds as I am not sure how they would get any kind of clue that anything is going on until then. You do not recieve any kind of T5 for TFSAs and I doubt that even the CRA has the manpower to monitor every TFSA account in the country. The only time they would be flagged is when and if it is withdrawn.
No they aren't going to let you claim capital losses and you could in fact permantly lose valuable contribution room which is why speculating within a TFSA might not be the prudent choice. At least if you speculate outside of a registered account the government becomes an equal partner in your capital loss should you unfortunately incur one.
From what I have heard no one that has posted in here looks like they would run a foul of the CRA's scrutiny for running a business in their TFSA including loops. Loops is the one that brought it up first and tried to make another poster look like they might not be earning as much as he was and I thought I'd throw his own words back in his face. "Tit for tat", like I said.
That being said, "Trying to make money to pay the bills" sounds oddly like the very definition of a business as isn't that initially why most people start one?
TFSAs were intended to be a savings vehicle until required in retirement as per the definition on the government's own website:
"The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number (SIN)
to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible."
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html GLTY and all
VeritasVern wrote: What is the definition of "carrying on a busines" in a TFSA and how/when do they decide that?
Right so if you pay capital gains in a TFSA - tell me, if one loses money can they then claim capital losses then? Complete garbage and intrusion by CRA when someone makes money but ingnore the fact quite a few will likely lose money trading - including a TFSA.
At any rate most on here prob trade within a TFSA monthly and I would assume would not subject to being deemed carrying on a business, rather trying to make money to pay the bills.