RE:RE:RE:RE:RE:RE:RE:RE:DG TFSA Stock Trading Rules
You may be surprised to learn that your trading activity could constitute a business, even if it’s done inside a TFSA. The tax rules mean that should a TFSA operate like a business then they have to pay income tax.
Recently, the Canada Revenue Agency (CRA) has focused their audits on taxpayers that are actively trading within their Tax-Free Savings account.
The CRA takes account a number of things into account when determining whether or not a TFSA is subject to income tax. These include the duration of the holdings, the frequency of the transaction and your intention to hold investments for resale at a profit.
StairwayTo wrote: No dead right.
FD I like your input and views, but have you been burned with the CRA?
Did you take some money out?
What I'm saying is TFSA is like an RRSP but without the tax on your gains.
In 5 years if you decide to take $100,000 out, it will be free of tax, regradless if today you traded a few shares
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fdfd12 wrote: NO dead wrong.
They see how much money you have in the account through the bank.
The bank every once in a while has to send to the CRA accounts which have a high $ amount.
Then they audit.
StairwayTo wrote: Due your own DD, to find out that as long as you don't cash out of your TFSA , you're ok
TFSA is for long term investment, but nothing prevents you to buy and sell on a weekly or monthly basis just to increase your investment.
One day you will cash some in with a nice return or not, and they will not care.
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Koooo wrote: DEEJAY. Why don't you do something constructive and go find us out the rules in the tsfa. When you find out please post on the bullboard what constitutes day trading and a tsfa. If you're doing that you're going to be screwed. Maybe even if you're not doing it. Would you do that for us please and thank you. You'll need to talk to cra. If you can find that out there's none on this board that will think you're stupid. Not saying I do. Koooo