Posted on: 26-01-11 15:45:51
http://michaeljamesmoney.blogspot.com/2009/10/tfsa-abuse.html
http://www.fin.gc.ca/n08/09-099-eng.asp
http://network.nationalpost.com/np/blogs/wealthyboomer/archive/2009/10/21/the-tfsa-crackdown.aspx
Quote:
Originally posted by BlueLobster
Quote:
Originally posted by Iceberg
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
I'm genuinely curious too. What're we laymen missing here?
Quote:OK, now I understand what you meant by "swap" - it's simply the switching or transferring between two types of accounts.
Originally posted by Iceberg
http://michaeljamesmoney.blogspot.com/2009/10/tfsa-abuse.html
http://www.fin.gc.ca/n08/09-099-eng.asp
http://network.nationalpost.com/np/blogs/wealthyboomer/archive/2009/10/21/the-tfsa-crackdown.aspx
For a min. I thought this was some new type of swap security that can turn $10K into $300K
Anyhow, the type of transactions described in the first blog post is blatantly illegal.
It doesn't take a tax genius or an investing genius to realize that this type of use of TFSA cannot be allowed.
It is sad that people did this and Finance Ministry had to clarify the rules and CRA had to issue circulars - what a waste of govt. time and taxpayer's money.
I'm glad those folks are getting auditied and re-assessed by the CRA.
Those who withdrew and deposited cash multiple times from the TFSA were wrong too, but that is at least understandable and pardonable during the early days.
But swapping back and forth between TFSA and RRSP was always illegal and those who did that knew it very well.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
That's quite the loophole, but sounds very reliant on how your stocks behave based on the example given in the article. To me, it sounds like more trouble than its worth, if you can find this kind of a magical stock, just keep dealing in the TFSA on your 15K and you'll be quite rich anyways, albeit still pay taxes on your RRSP withdrawal.
I'm glad they caught it and closed it though.
-----------------------------------------------------------------
Are you there?
Can you keep US funds in TFSA?
If yes, does anyone know of the brokerage firm that will allow the trading of US equities in US funds and allow US funds in TFSA (not convert the funds back in CAD after the US equity is sold)?
Quote:Yes
Originally posted by Diego
Can you keep US funds in TFSA?
Quote:Yes, Questrade.
If yes, does anyone know of the brokerage firm that will allow the trading of US equities in US funds and allow US funds in TFSA (not convert the funds back in CAD after the US equity is sold)?
TD Waterhouse supports this indirectly by allowing wash trades.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
