What's your TFSA worth?

[16hypen3sp]

$80k. Haven't contributed to it at all this year. CRA says I can put in another $26k as of right now.

Focused more on my RRSP's last year to get a refund and get away from the installment reminder bullshit.

[mazdavirgin]

Only recently managed to max out the TFSA. Between the mortgage and RRSP it takes a lot of income to keep both those things topped up...

[nzwasp]

Started at 6K last year contributed 10K this year, currently have 85K (thanks AMC) and I have 50K room.

[Brent.ff]

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Started at 6K last year contributed 10K this year, currently have 85K (thanks AMC) and I have 50K room.

That’s silly. Well done

[suntan]

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Started at 6K last year contributed 10K this year, currently have 85K (thanks AMC) and I have 50K room.

That’s double meat money.

[Xtrema]

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I don’t really know when I want to retire, I can’t see myself enjoying sitting around but at the same time I don’t want to work forever doing the same thing I guess. I started saving at 23 but I fear inflation I guess.

Well, if your dream car is $150k today and you are 30. Chance are that same car will be $300K by the time you are 50. And the inflation we are seeing the last few months isn't that encouraging.

And repeat of Beyond favoriteL


Or if you prefer Buster's favorite asset class version

[Sentry]

[blairtruck]

I have no idea what im doing so I put 40k in RRSP last year then got 16k back in tax return and put that in tfsa.

[ExtraSlow]

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I have no idea what im doing so I put 40k in RRSP last year then got 16k back in tax return and put that in tfsa.

This is a reasonable approach that accomplishes several goals. Approved.

[16hypen3sp]

Thought this was an interesting case:

The CRA is actively looking for people who day trade investments in their TFSAs

A tax case decided earlier this month involved a taxpayer who grew his TFSA to more than $617,000 from $15,000 in three years by day trading penny stocks.

The taxpayer, a Vancouver-based investment adviser, opened his first TFSA at the very beginning of the program’s launch on Jan. 2, 2009. It was a self-directed TFSA, and all securities purchased and sold by the TFSA were “qualified investments,” as stipulated by the Income Tax Act.

Common types of qualified investments include: money, guaranteed investment certificates and other deposits, most securities listed on a designated stock exchange such as shares of corporations, warrants and options, and units of exchange-traded funds, real estate investment trusts, mutual funds and segregated funds, debt obligations of a corporation listed on a designated stock exchange, and debt obligations that have an investment-grade rating. The CRA maintains a comprehensive list of qualified investments in its Folio S3-F10-C1, Qualified Investments — RRSPs, RESPs, RRIFs, RDSPs and TFSAs.

Most of the taxpayer’s TFSA investments were non-dividend paying and speculative in nature, with the majority being junior mining penny stocks listed on the TSX Venture Exchange. The taxpayer’s TFSA held most of the shares for only brief periods of time.

The taxpayer contributed the maximum allowable contributions of $5,000 to his TFSA in early January in each of 2009, 2010 and 2011. By Dec. 31, 2011, his TFSA had grown to a fair market value of $617,371. By the end of 2012, the TFSA’s market value had dropped to $564,483. Shortly thereafter, in January 2013, the taxpayer liquidated the securities in his TFSA, and transferred proceeds of nearly $547,800 to himself on a tax-free basis.

The CRA reassessed the taxpayer’s TFSA for each of the 2009, 2010, 2011 and 2012 taxation years on the basis that the TFSA carried on a business of trading qualified investments in each of those years and, therefore, the income from carrying on that business during each of those years was subject to income tax. The tax assessed was based on taxable income of $44,270 in 2009, $180,190 in 2010, $330,994 in 2011 and $14,027 in 2012.

The judge said there was no doubt that the taxpayer was conducting a day trading business in his TFSA based on his trading activity. The consequence of doing so is clearly spelled out in the Income Tax Act, which states that a TFSA is generally exempt from tax on its income, subject to two exceptions: the TFSA holds non-qualified investments or it carries on as a business. If either exception applies, then tax is payable by the TFSA on its taxable income.

This rule is in direct contrast to the rules governing active trading in a registered retirement savings plan (RRSP) or registered retirement income fund (RRIF). The Income Tax Act has a specific rule that exempts both RRSPs and RRIFs from paying tax on business income when that income is derived from investing in qualified investments.

The judge concluded it was clear the taxpayer — a professional investor with deep knowledge and experience in the securities market, who traded frequently, buying and selling shares that were mostly speculative in nature and owning them for short periods — was carrying on a trading business in his TFSA. As a result, the TFSA should be taxable on its income in 2009, 2010, 2011 and 2012.

Full article here:
https://financialpost.com/personal-f...vestments-tfsa

[rage2]

The CRA considers a variety of factors when determining whether a taxpayer’s gains from securities constitute carrying on a business, including the frequency of the transactions, the duration of the holdings, the intention to acquire securities for resale at a profit, the nature and quantity of the securities, and the time spent on the activity.

I feel like the CRA is incredibly vague here so they can decide you’re a day trader if you make money. I’ve seen this problem crop up in the news many times.

[Buster]

Lol... What a moran to transfer it out all at once

[Sentry]

Government being intentionally vague to allow overreach? No way

[rage2]

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Lol... What a moran to transfer it out all at once

The rules doesn't forbid it does it? Are you saying this because it's raising red flags?

[killramos]

The “intention to acquire securities for resale at a profit bit” is fucking hilarious.

Exactly why does the CRA think people invest.

[ExtraSlow]

For ESG

[Sentry]

Here's a question, does CRA charge back interest in a case like that? Say for his 2010 year they take a look at it February 2023 and find him owing 40k in taxes on the 180 he made, do they also charge him 13 years worth of interest on that balance, or since it's only just been (re)assessed the due date for that balance is now and interest would only accrue from this date.

[ExtraSlow]

I'm drawing down my TFSA this quarter, so to answer the OP, a lot less than previously.

[rage2]

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Here's a question, does CRA charge back interest in a case like that? Say for his 2010 year they take a look at it February 2023 and find him owing 40k in taxes on the 180 he made, do they also charge him 13 years worth of interest on that balance, or since it's only just been (re)assessed the due date for that balance is now and interest would only accrue from this date.

They back charge interest. I’m going thru that right now because they reassessed me on my $10k worth of dental receipts 2 years ago. I don’t even know why I bother submitting anything for a $1200 refund when I’m wasting more than $1200 worth of time trying to talk to these idiots.

[ThePenIsMightier]

"Someone should do something about this!!"
-people

"We can fix this by adding policies and hiring more gov't workers."
-Gubmint