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01-09-2011, 09:43 AM
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#1 | | I contribute to threads in the offtopic forum
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| Regarding TFSA
Quote:
The TFSA and capital gains. Capital gains are likewise taxed more favourably than interest income in normal circumstances outside of registered plans and the TFSA. Only half of your capital gains, net of any losses, are taxable.
Capital gains also provide an opportunity for tax deferral because the gains are only taxable when the gain is “realized,” generally through the sale or transfer of the asset. You will not pay any taxes on the “unrealized” gains for as long as you continue to hold the investment.
From a TFSA perspective, the majority of capital gains potential will generally come from equities, although you may also realize some capital gains on bonds and mutual funds under certain circumstances.
| Can anyone explain the bolded line?
If I use $10k to make $100k in 5 years and withdraw them afterwards, are those considered "realized"?
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01-09-2011, 10:39 AM
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#2 | | Rs has made me the man i am today!
Join Date: Apr 2004 Location: Vancouver
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realized means when you sell it
so if you don't sell it, CRA will not tax you on your gain in market value
When you take out $ out of your TFSA it won't be taxed
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01-09-2011, 11:19 AM
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#3 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
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2011 - Buy ABC Stock for 10k
2012 - ABC up 90k
2013 - ABC up to 100k
2014 - Sell ABC @ 100k --- gain realized in 2014. include 45k in taxable income.
if you use any sort of online brokerage , they will send u a T-3 (or t-5 can't remember) showing your dispositions and resulting gains/losses
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Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-09-2011, 11:30 AM
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#4 | | I contribute to threads in the offtopic forum
Join Date: Dec 2003 Location: Vancouver
Posts: 2,777
Thanked 1,045 Times in 419 Posts
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that sorta defeats the purpose of a tfsa.
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01-09-2011, 12:42 PM
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#5 | | I came, I saw, I conquered.
Join Date: Mar 2005 Location: Vancouver
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Wtf, then whats the point of having a TFSA then?
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01-09-2011, 12:56 PM
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#6 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
Posts: 8,138
Thanked 2,069 Times in 867 Posts
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if you dont use the tfsa. you will be taxed 50% on proceeds.
if you sell within the tfsa and withdraw money -- its not taxable like Waddy said.
__________________
Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-09-2011, 02:01 PM
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#7 | | Revscene.net has a homepage?!
Join Date: Jun 2004 Location: Vancouver
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| Quote:
Originally Posted by tiger_handheld  2011 - Buy ABC Stock for 10k
2012 - ABC up 90k
2013 - ABC up to 100k
2014 - Sell ABC @ 100k --- gain realized in 2014. include 45k in taxable income.
if you use any sort of online brokerage , they will send u a T-3 (or t-5 can't remember) showing your dispositions and resulting gains/losses | they don't give u any tax slips on cap gains/loss, you have to print out the transactions for those
you only get a t3 or t5 for any dividends or interest income
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01-09-2011, 02:38 PM
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#8 | | Rs has made me the man i am today!
Join Date: Apr 2004 Location: Vancouver
Posts: 3,073
Thanked 69 Times in 47 Posts
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^ right, no slips are given, but depending on your broker they will give you a list of your sales
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