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Basically from what I think it means is that whatever money you make in it, the gov't will not tax it. Even when you take it out, they won't tax it. But whatever the amount is, you can only contribute up that amount plus that years $5000.00 on the following year.
Ex.
2011
You started a TFSA and deposit the maximum $15000.
You buy CUU and doubled your money to $30000.
You take $7000 out to go to Vegas.
By year end you will have $23000.
The cap gain on your CUU investment will NOT be taxed.
The $23000 inside your account can be used for other investments and any gains will not be taxed. If you have losses, I don't think you can use it to offset your income taxes since the government doesn't tax you in the first place.
In 2012, you have the option to deposit $5000 for that year's contribution (2012). PLUS the $7000 you took out before.
Just make sure you don't contribute over the max amount or the government will penalize you.
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