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Tax free trading accounts

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1397 Reads | 11 Comments | 3 People call this a favourite

Most everyone is aware of the New tax free savings accounts that became available to Canadian residents on January 2nd 2009.What a lot of people don't seem to know is that there is at least one discount broker that is offering a tax free TRADING account. This blog will focus on the tax free trading accounts and try to answer some of the misinformation out there.

  • Income Splitting

    290 Reads | 2 Comments | October 3, 2010

    A good way to double your contribution room may be to income split with your spouse.The spouse that makes the most money could open another account in his or her spouse's name then give the spouse money to put in the account.By doing this you will have doubled your contribution room and the higher income earner effectively contributes to both accounts.Over time this could lead to a sizable...

  • Haven't opened a TFSA yet?

    380 Reads | 2 Comments | September 22, 2010

    If you have not opened a TFSA yet it is good to know that as long as you were 18 or older and a resident of Canada since 2009 your contribution room accumulates.So if you were to open one this year and you do not have any other TFSA's you could contribute $10,000 and of course if you waited until next year (2011) before deciding to open the account  you could contribute $15,000.

  • Unused Contributions

    88 Reads | 0 Comments | September 22, 2010

    If you don't use your full $5000 contribution in any given year any unused contribution room for your TFSA accumulates and you can use it in future years.Canada Revenue Agency will provide you your total unused contribution room on your annual Notice of Assessment so your 2010 Notice of Assessment will show you how much you can contribute as of January 1,2011.

  • Claiming a tax loss

    98 Reads | 3 Comments | February 7, 2009

    From what I understand,if you transfer a security into the TSFA and sell it at a loss,the rules are similar to that of an RRSP.You cannot buy the same security back for 30 days and claim that loss.This according to a financial advisor on a show on BNN the other day.If anyone can either verify or refute this statement by all means do so.Also,if there is anyone who could clear up any interest...

  • Response to a comment regarding TFSA's

    86 Reads | 0 Comments | January 24, 2009

    Here is one of the comments on this blog.I will paste the comment and provide some answers to the best of my knowledge regarding the TFSA's.If anyone reading my response can add to or clarify please do...

  • Transferring securities to a TFSA(2)

    74 Reads | 2 Comments | January 19, 2009

    It seems there are a lot of TFSA's being opened up at this point and it is causing delays in the transfers.As an example,I transferred some securities from my regular Questrade account into my new Questrade TFSA account on January 13th.The transaction has still not gone through yet.On top of that,no one at Questrade can tell me at what price the securities will be entered into the account.This...

  • Capital gains on a TFSA

    89 Reads | 1 Comment | January 14, 2009

    One of the stocks I put into the new tax free account is a penny stock I bought for 3 cents a share.The closing price of that same security the following business day I made the contribution was 8 cents.If and when I sell this stock for a profit I will have to claim a capital gain of 5 cents per share.Any gains over the 8 cent mark will be tax free.All of my future contributions will be of cash...

  • Transferring Securities

    79 Reads | 1 Comment | January 14, 2009

    Just having gone through the process of transferring stock from one of my regular trading accounts into the new tax free account,I would suggest you should deposit cash into the account if at all possible.This is what I have been told regarding transferring securities into the new account.The contribution value of the stock you add to the new account is taken from the closing price of the...