RE:RE:RE:RE:TFSA contributionsCAinPlap:
Does this mean that an unrealized capital gain – from the period October - December – would be considered a “benefit?”
If so – then the gain for that period could be penalized. But it seems unlikely that a capital gain after that period would be taxed. Assuming that TLT warrants are worth 13.5 cents today – you could transfer 44,000. If – for the sake of argument – they are worth 18.5 cents next January – you would have a gain of $2,200.
Two points.
1. If you had held those shares outside the TFSA, that same capital gain would – if realized – have resulted in a profit which is only partially taxed. So – I would argue -- the benefit would be less than $2,200. The benefit is only the difference between $2,200 and the benefit which would accrue by selling the shares and paying tax outside the TFSA.
2. At 18.5 cents in January, you would only be able to contribute approximately 32,000 warrants. By making an early contribution, as of early January, you will have an extra 12000 warrants in the TFSA account. It seems to me that any gains on these extra shares would not attract tax – and in the event of further appreciation – you will still be ahead of the game.
I am not an accountant, and know nothing of these matters. I have kept the name and ID number of the agent with whom I spoke this morning. I outlined my intentions quite clearly – and he made no mention of any theoretical capital gains penalty. Time will reveal all.