Pyrogenesis Canada Inc T.PYR

Keeping the TF in TFSA.... Here's how

[Aarman4]

Hey folks, just for those that have been asking....(anybody that would like to provide links, go for it. If you don;t trust my word, then find some links, but this is what I know to be true....


It is VERY grey, and there are no exact rules........

What is said is that if you run your TFSA like a business, then you will get tyaxed like you are running it as an investment business.

This applies to High frequency trading. This applies to running it as a "tax avoidance" mechanism.

$250k you will likely begin to get audited. You want it to look like you have invested, and grown your bottom line. You do not want it to look like you are day trading, and you do not want it to look like you "know what you're doing". High frequency trading is an absolute no-no.

I do not advocate to even buy in below the line, and sell above the line. For me, my TFSA is simply to buy in, and sell with a minimal years wait on each holding, unless it is a loss.

If you read the grey fine print, just by being here on stockhouse and discussing the stock is enough for you to be shown to be a "professional" investor.


It seems to me, you get tax free investing, until they decide to take your taxes because you were too good at it......

Also, if you stay invested, I don;t believe the $250k will matter, it's when you start moving that in and out of holdings and the cash portion of your TFSA that you might get audited...


As alluded to, all good problems to have.

Buy, Hold, Sell a ways down the road.....I do that anyways, so the TFSA is a really good vehicle that I use for some of my investing.

Cheers!

[RealistDontalkm]

I agree with you. For me I max out my TFSA with long term stocks like VFV and other PYR and HPQ. I then move almost my entire to rrsp and non-register account! Don't want my PyR to get tax when it explodes!!  

[Awesome1]

Let's say I wait 5 years and PYR explodes and I have millions. Do I get taxed when I sell?

[RealistDontalkm]

you don't get tax if it explode in your TFSA. It's free money and tax free.. rrsp and non-register you do, because in rrsp any money you put in there is consider income and any gains get tax too. Hope this is helpful.  

[RealistDontalkm]

ps. The only bad thing in TFSA is that you have limits in how much you can contribute inside and when you pull your money you loss contribution room (you have to wait the next year to regain it). But you can pull your millions tax free!  so it means: you can put money in your TFSA but has limits. ex. You have a limit of 70k(money you can put inside TFSA) you can pull any x amount of

[Awesome1]

Sorry let me clarify that. Buying Pyr and Hpq for the first time and holding it for the next 5 years and I made millions. When I sell all of it do I get taxed?

[Uncleron]

transfer as much as you can into your TFSA tomorrow ASAP ! Take advantage of any contribution room you might have before the SP rises quickly. Do not dilly dally if you do have contribituon room use it now to maximize the amount of shares deposited.....uncleron is always right ! The SP could double in a heartbeat ...Cheers

[Aarman4]

No, you SHOULDN'T be taxed......... But you certainly will be audited. If they feel you had ANY professionalism or actual "acumen" with your investing, they could potentially tax you on the gains. Also, if you work in finance, you most certainly will be audited and likely taxed, as you are considered a pro and using it to avoid taxes. Good problems to have, but major problems

[claudemc]

Rules for the TFSA are very clear, not sure what there is that is not clear or grey. If you 'trade' in the TFSA, that being hourly, daily or even weekly to buy and sell the same stocks, that would be flagged as professional trading. If you are 'investing' which includes adjusting your investments from time to time, including selling when a stock reaches an investment goal or to

[HARJAY]

I believe this subject has been discussed before maybe not on this BB but on others. Basiclly if you use your TFSA for what the CRA considers to be a buisiness like day trading or high frequency trading they may consider that you are using it to create  " income " and not what it as meant to be used for.  If you use your TFSA to trade in other things that are out of the norm of

[doughgirl]

I have just read up on this and you are correct. The big question is how frequently do you have to trade for them to consider it a business. And do they audit your account based on growth in value?

[MakeItRain1]

It's difficult to say. There are so many grey areas and the internet is lettered with different stories of how people got taxed. It's hard to know what's true and what's not. Some common concenouses is are not to take out profits to often to appear as take a salary/pay check, minimize account activity. If you buy your shares and hold them for 5 years without a lot of activity you

[developbc]

Yes lot of chatter on this but after calling few times to CRA...as long as you invest and hold you will be totally fine. IF you trade often in your TFSA that is where CRA can deem it to be running it as a business and then you will or could be taxed at your marginal rate even forgoing capital gains exemption.  The smart longs here know what they have - buy and hold :)  With all these