RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Capital Gains Tax - Just Buy and Holdagreed.
(1) You cannot withdraw from a TFSA and put it back in ... you can put back in an amount equal to your cumulative unused contribution amount.
(2) The 1% per month penalty on an excess amount is more dire than just that. A form needs to be competed and that form can trigger a review and that review can trigger an audit. This is how they catch those using TFSA's to trade rather than invest. If deemed trading ... all gains are taxed as income .. not even as capital gains.
(3) Form for overcontribution: https://www.cra-arc.gc.ca/E/pbg/tf/rc243-sch-a/rc243-sch-a-15e.pdf
(4) This is a DIRECT copy and paste so there is no confusion as some say who cares about 1% per month penalty if making more that in just days and all tax free: "you may be taxed 100% of any income earned on the excess amounts".
(5) Good link for all of the above: https://www.taxtips.ca/tfsa/overcontributions.htm
Dca8605 wrote: Explorer200 wrote: BoJangles70 wrote: NOPE! If you contribute $46500 and make a million. Great! If you take out 500,000....that's it. You are done. You still have your 500k but Put in $1 back into your TFSA(So your contribution is $46501), U will be TAXED!!
Interest, dividends, and capital gains earned in a TFSA are tax-free for life. YourTFSA savings can be withdrawn from your account at any time, for any reason1, and all withdrawals are tax-free. And if you want, you can put back the amount you withdraw into your TFSA.
Partially incorrect.
i confirmed with cra about this. Your annual contribution room will not change of you withdraw money. However any money you do withdraw will affect your NEXT YEARS contribution limit.
If you max out for the year and take out the same amount a week later you will have no room until the following fiscal year. This is according to the CRA themselves