RE:RE:RE:Trading in your TFSANumbers99 wrote: Trading cannabis stocks in your TFSA is not a good idea. Your banker or FA should of warned you.
The CRA has made it clear that they want to discourage Day Traders or individuals trading in "speculative" stocks that this is not the place to shelter money and avoid capital gains.
The CRA spells out that each case will be dealt individually and there are many factors in which they will look at. Such factors include.....where did the money come from?, was it borrowed money? what stocks are being invested into, how many trades were made and most importantly...was it a "spec" stock. Cannabis is a speculative stock in the eyes of the CRA, I can state on record that I know this to be correct.
Now....does this mean you will be audited? I would say that if you invested $48,500 and made a profit of lets say $ 50,000 then probably not.....BUT if you made a profit of $ 150,000, oh ya you will for sure be paying capital gains.
All information is on the CRA website.....good luck and remeber the old saying....cash is king !!!!!
It seems like the sentiment regarding TFSA's being taxed as business income has changed. Are there any more confirmed cases where CRA has taxed individuals for trading in their TFSA? I remember reading an old article, maybe written in 2013, where a guy had 7 figures in his TFSA, and CRA went after him. That was the only case I heard of.
I used to work at a bank, and still have many colleagues that work for Waterhouse for example, and they have never come across an instance where someone's TFSA was taxed for trading. I'm not saying it wont happen, but it doesnt seem like something CRA is aggressively pursuing. I would say real estate is a much better source of $$$ than taxing TFSA traders.
With that said, I trade a ton in my TFSA and only MJ stocks. I decided im gonna worry about this problem when it presents itself, if it does.