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c2c 01-29-2011 03:26 PM
Quick Question about stocks
 
If I invest 10k into a stock then sell it for 15k
- I would have a 5k profit (5k taxable income for this year)
Now if I take the 15k and reinvest it to another stock, would I be taxed for the 5k profit?

DOHCVTEC 01-29-2011 03:53 PM
If you did not buy the initial stock from a TFSA, then the 15K sell would result in a capital gain of 5k, half of which is taxable (so only $2500 gets taxed). What you do with the 15k afterwards has nothing to do with the 5k you made on SELLING the stock. Capital gains tax only applies on realization, i.e. on selling of the stock.

If, however, you did all of this from a TFSA, then you wouldn't be paying any capital gains tax.

c2c 01-29-2011 03:59 PM
thank you

c2c 01-29-2011 04:15 PM
Another thing
-I have lets say 20k in a TFSA
do i just claim my capital gains from my TFSA at the end of the year or do i need to fund my stocks from directly my TFSA?
-not so sure because im using an online broker

waddy41 01-30-2011 02:11 AM
you don't need to claim gains/losses within your tfsa

Ulic Qel-Droma 02-10-2011 03:42 AM
the downside of TFSA is you can't claim losses. so if you're a new/shitty trader, you wouldn't use your TFSA for those purposes.

mr_chin 02-10-2011 05:15 AM
Quote:
Originally Posted by waddy41 (Post 7285373)
you don't need to claim gains/losses within your tfsa
you will be taxed though if they are "realized"... according to the cra website.

MoBettah 02-10-2011 05:23 AM
Does that include foreign equities in TFSA? I thought those are still subject to some type of tax.

jackmeister 02-10-2011 07:25 AM
Quote:
Originally Posted by MoBettah (Post 7299940)
Does that include foreign equities in TFSA? I thought those are still subject to some type of tax.
Any earnings/losses done through a TFSA account does not have any tax effect on you.

valent|n0 02-10-2011 09:51 AM
max tfsa up to this year is 15k correct?
and if I earn 2000 on the TFSA the 2000 is not taxable?

mr_chin 02-10-2011 10:22 AM
Something worth reading

http://www.cra-arc.gc.ca/tx/ndvdls/t.../vntg-eng.html

Quote:
An advantage may also include any increase in the value of the TFSA that can reasonably be considered to be attributable, directly or indirectly, to:

* a transaction or event (or a series of transactions or events) that does not reflect commercial terms and whose main purpose is to enable the holder (or another person or partnership) to benefit from the tax-exempt status of the TFSA; or
* a payment received in substitution for either a payment for services rendered by the holder or non arm’s length person, or a payment of a return on investment or proceeds of disposition in respect of property held outside of the TFSA by the holder or non-arm’s length person.
I think the bolded line means that if the CRA bust you for using your TFSA as a source of living income, you will be taxed. Correct me if I am wrong.

waddy41 02-10-2011 11:35 AM
Quote:
Originally Posted by MoBettah (Post 7299940)
Does that include foreign equities in TFSA? I thought those are still subject to some type of tax.
pretty sure we only pay tax in canada on capital gains on US equities...we have tax treaties with some countries

however, the dividends i receive from US companies have taxes withheld...


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