Comments on: Top 4 Tax Free Savings Account Strategies

By: Morning-wood

Morning-wood — Fri, 07 Aug 2009 20:04:58 +0000

Responding to the fact that Questrade is the only discount brokerage with TFSAs…

I was looking at this and I see a bias towards Questrade. It seems fishy.

I use Q-trade and I am happy with it and it has won numerous awards from the Globe and Mail.

I had my TFSA set up with Q-trade BEFORE the end of 2008 so whoever is pushy Questrade outa do their research

By: Amit

Amit — Tue, 28 Jul 2009 19:43:48 +0000

How is this low MER Claymore Global Monthly Advantaged Dividend ETF for TFSA?

By: Sampson

Sampson — Tue, 12 May 2009 15:05:08 +0000

Toban, REITs (most if not all) will be exempt from the 2011 change in taxation laws – presumably they should be able to maintain high distributions. After that, it may be a matter of shifting bonds and other interest paying investments, as well as foreign dividend producing equities into the TFSA for me.

By: Toban

Toban — Tue, 12 May 2009 14:12:37 +0000

Income trusts are the perfect match for the TFSA because their income would be fully taxed if outside the TFSA. But in 2011, trusts are going to be taxed, so from what I understand they’ll be given the dividend tax credit. Dividend income would defeat the purpose of the TFSA, because it’s hardly taxed anyways.

Are there any high yielding investments that can take full advantage of the TFSA post-2011?

By: Jordan

Jordan — Tue, 31 Mar 2009 12:39:39 +0000

Wow, 60% annual returns… what’s your secret?

By: Al

Al — Tue, 31 Mar 2009 07:21:21 +0000

Has anyone considered over contributing to the TFSA and eat the 1% a month so long as you can make more than 1% a month you should still be a head of the game.

I’m a pretty decent trader and make on average 5% on my portfolio each month. So i’m thinking i eat the 1% a month for the first 6-12 months and then pull out my over contribution amount leaving my capital gains in the account to continue to trade tax free. :)

By: Maxtron

Maxtron — Mon, 09 Feb 2009 17:25:15 +0000

Thank you DK for your reply!

Seems like I didn’t brake my neck after all… Not yet anyway… :)

By: DK

DK — Mon, 09 Feb 2009 15:48:33 +0000

Maxtron,

In a nutshell, U.S. dividends are taxed at 15%, or 30% if you have not filed a W8-BEN with your brokerage. These amounts will be withheld by your broker.

Your capital gains are not subject to U.S. tax.

By: Maxtron

Maxtron — Sun, 08 Feb 2009 02:20:04 +0000

Hi, this is my first post, I’m kind of new at this. I just jumped in with trading stocks with my TFSA and I think I dove in the shallow part of the pool. I’m currently trading US stocks because I tought I would save the taxes, since I believe the dividends are taxed as interest income. Now here is the problem, this is an email I have received 2 days ago from Questrade.

”… The U.S. government does not recognize registered education savings plans (RESPs) or tax free savings accounts (TFSAs) in their current tax treaty. All USD income earned in these accounts will be subject to applicable taxes.”

Can someone please shed some light on how this will impact my capital gains and dividends.

Thanks!

By: Craig Sadler

Craig Sadler — Wed, 14 Jan 2009 01:54:41 +0000

ron87 that is true…the TFSA contribution room is $5000/year

By: ron87

ron87 — Tue, 13 Jan 2009 21:52:53 +0000

I was just on the ING Driect website. And I read that the maximum contribution room an individual can have is $5000. Is this true? Or is there a way to increase your maximum contribution room?

By: Sampson

Sampson — Fri, 09 Jan 2009 17:38:03 +0000

Has anyone actually made in-kind transfers of existing holdings into their TFSA’s? I’m in the process, and just realized that its best to wait until the markets are down, therefore we can squeeze more units/stocks into the TFSA.

I suppose just as long as I get the US and US ADR dividend paying holdings in before pay-day then I should be able to benefit from the tax-free status. Perhaps I’ll be waiting for a dip in the market? Hmm. Any good advice on how to ‘time’ the market? I don’t think I’d make a very good stock ‘daytrader’.

By: Carole

Carole — Fri, 09 Jan 2009 02:14:17 +0000

What are the rules about changing your TFSA from one company to another for a better rate or one that offers stock options.?

By: Mark

Mark — Wed, 31 Dec 2008 21:31:18 +0000

Great post!

I’m leaning towards option # 4 since, as you can read above, there are so many unanswered questions with the TFSA.

PC Financial has a tidy 3.75% rate.

Why not put the $$ there for the 1st year and wait until the dust settles?

Option # 3 isn’t a good one since you have to “watch when payments are due”. I don’t know about you, but I have enough things to watch already.

Option # 1 and the use of REITs in the TFSA may be a good move, if you want an income flow. I may go this route in the future.

By: UK

UK — Fri, 26 Dec 2008 03:44:14 +0000

Hi,

Can we trade US options in the TSFA account?

Thank you

By: Steve

Steve — Thu, 25 Dec 2008 22:01:26 +0000

Does anyone know if appointing a beneficiary to a TFSA would avoid probate fees?
Thanks

By: Remus

Remus — Fri, 19 Dec 2008 21:29:32 +0000

From all I am reading now I think a good choice would be Questrade tax Free Account and hold in it some Gold. The gold prospectes in the next years seem very optimistic from what I read. Also did you guys updated your choices as per who is the cheapest company? I now see their fees and they seem to be the lowest in Canada or am I mistaken? their "democratic pricing" :)

By: Sampson

Sampson — Fri, 05 Dec 2008 17:40:08 +0000

wow, quick responses. i was thinking about it and it certainly seemed to good to be true.

with this volatility, 30 days out of the holding seems like an eternity. maybe worth a gamble though, since i’ve got some holdings with very substantial losses.

By: nobleea

nobleea — Fri, 05 Dec 2008 17:34:55 +0000

I believe in kind transfers from a non reg to a registered account trigger capital gains, but NOT capital losses. To get the losses, you have to sell outside the TFSA, contribute the cash, then wait 30 days and rebuy the equities.

By: DK

DK — Fri, 05 Dec 2008 17:33:22 +0000

I haven’t seen anything from CRA on in-kind transfers to TFSA. Why do you think there will be an allowable capital loss? Remember that if the same rules apply as RRSP then a transfer-in-kind will not allow you to claim a capital loss…