Tax Free Saving Account

[uf65ca]

Each individule only can put $5000 per year into that account. And those $5000 is after tax, not tax free. only the investment gain for that $5000 is tax free. Image how much you can earn from that $5000 in one year and how many tax you can save from those gain. That almost means nothing.

you're right, only the capital gain part is tax free and the limit is $5000
per adult per year, really not much but better than nothing

 

[mooncake]

you're right, only the capital gain part is tax free and the limit is $5000
per adult per year, really not much but better than nothing

I think that is a lot. $5000 per person per year, that is $10,000 per family per year. If you and your spouse are at 33% margin tax rate, the tax shelter makes you earn 50% more than you could do without it for interest type income, 19.7% more for captical gain investment.
Higher income families are benefit even more.
40% margin tax rate: interest income, 67%, captical gain 25%.
example: 33% margin tax rate, 25 year, 6% interest, $10,000/year
without tax shelter: interest 434369, captical gain 501873
with tax shelter 581563
The different is big to me.

 

[dkwan]

It is something big if you are looking at it long term.

 

[ccc]

..., since the money will be used after you retire. ...

The money in a TFSA can be used any time, I guess. No?

 

[ccc]

I think that is a lot. $5000 per person per year, that is $10,000 per family per year. If you and your spouse are at 33% margin tax rate, the tax shelter makes you earn 50% more than you could do without it for interest type income, 19.7% more for captical gain investment. ...

Personal income tax was already paid on the $5,000 put into that account/person/year. So it is your after-tax-dollars. Only the capital gains/interest from that account is tax free.

 

[mooncake]

Personal income tax was already paid on the $5,000 put into that account/person/year. So it is your after-tax-dollars. Only the capital gains/interest from that account is tax free.

I don't understand what you meant. Any income will be taxed unless under tax shelter. You can try calculate yourself. You can even compare TFSA against RSP, I perfer TFSA than RSP.

 

[巴菲]

I don't understand what you meant. Any income will be taxed unless under tax shelter. You can try calculate yourself. You can even compare TFSA against RSP, I perfer TFSA than RSP.

”月饼”和CCC“华裔加拿大公民？”你们好像观点一致吧?

还是用中文说吧。TFSA现在还只是一个PROPOSAL，从2009年开始，每人每年存入的额度是$5000，账内所有收益INTEREST-CAPTALGAIN全免税，任何时候都可以拿出来用，不计税。也就是说，你今天存入$5000，买了一特殊股，巨黑的黑马，明儿就变成5Million，那么你还是不用交一分钱的税。所以TFSA是比RSP好多啦。我是看好它的，TFSA可能对社会经济、人们的投资储蓄习惯都有FUNDAMENTAL的影响。

但一旦取出后，就等同于你的税后收入，再想重新存入TFSA就不那么容易，会受到当年$5000额度的限制。

回CCC，我上次说的供退休后用，是指一般人们的打算。因为是长期的，比较合适的地方不应该是在一般的银行开这个账户，看看你们的GROUP-BENIFIT的PROVIDERs，如果他们的帐号有CREDITOR-PROTECTION的功能的话，那是最佳的，然后GROUP帐号管理费都比较低。现在人都不是小伙子，么不准哪天开车撞着一狗吓着一人，你的房子和银行的一切就都是别人的啦。

对了，如果有人准备抄底，一月一日一到，ＴＦＳＡ应该是一个好ＶＥＨＩＣＬＥ。

 

[mooncake]

TFSA据我所知可以随时取出来（借），存回去（还），并不占用当年额度。

Budget 2008 - Tax Free Savings Account

我不是华裔加拿大公民，我不打算向一个不认识的英国老太太效忠。要是她宣誓向我效忠我还会考虑一下。

”月饼”和CCC“华裔加拿大公民？”你们好像观点一致吧?

还是用中文说吧。TFSA现在还只是一个PROPOSAL，从2009年开始，每人每年存入的额度是$5000，账内所有收益INTEREST-CAPTALGAIN全免税，任何时候都可以拿出来用，不计税。也就是说，你今天存入$5000，买了一特殊股，巨黑的黑马，明儿就变成5Million，那么你还是不用交一分钱的税。所以TFSA是比RSP好多啦。我是看好它的，TFSA可能对社会经济、人们的投资储蓄习惯都有FUNDAMENTAL的影响。

但一旦取出后，就等同于你的税后收入，再想重新存入TFSA就不那么容易，会受到当年$5000额度的限制。

回CCC，我上次说的供退休后用，是指一般人们的打算。因为是长期的，比较合适的地方不应该是在一般的银行开这个账户，看看你们的GROUP-BENIFIT的PROVIDERs，如果他们的帐号有CREDITOR-PROTECTION的功能的话，那是最佳的，然后GROUP帐号管理费都比较低。现在人都不是小伙子，么不准哪天开车撞着一狗吓着一人，你的房子和银行的一切就都是别人的啦。

对了，如果有人准备抄底，一月一日一到，ＴＦＳＡ应该是一个好ＶＥＨＩＣＬＥ。

 

[ccc]

”月饼”和CCC“华裔加拿大公民？”你们好像观点一致吧?

还是用中文说吧。TFSA现在还只是一个PROPOSAL，从2009年开始，每人每年存入的额度是$5000，账内所有收益INTEREST-CAPTALGAIN全免税，任何时候都可以拿出来用，不计税。也就是说，你今天存入$5000，买了一特殊股，巨黑的黑马，明儿就变成5Million，那么你还是不用交一分钱的税。所以TFSA是比RSP好多啦。我是看好它的，TFSA可能对社会经济、人们的投资储蓄习惯都有FUNDAMENTAL的影响。

但一旦取出后，就等同于你的税后收入，再想重新存入TFSA就不那么容易，会受到当年$5000额度的限制。

回CCC，我上次说的供退休后用，是指一般人们的打算。因为是长期的，比较合适的地方不应该是在一般的银行开这个账户，看看你们的GROUP-BENIFIT的PROVIDERs，如果他们的帐号有CREDITOR-PROTECTION的功能的话，那是最佳的，然后GROUP帐号管理费都比较低。现在人都不是小伙子，么不准哪天开车撞着一狗吓着一人，你的房子和银行的一切就都是别人的啦。

对了，如果有人准备抄底，一月一日一到，ＴＦＳＡ应该是一个好ＶＥＨＩＣＬＥ。

谢谢指点！

 

[Green158]

Except stocks and MF , can I trade option or future in the TFSA ?

 

[ccc]

I don't understand what you meant. Any income will be taxed unless under tax shelter. You can try calculate yourself. You can even compare TFSA against RSP, I perfer TFSA than RSP.

现在明白你先前是指什么说的了。你是说，如果不。。。那么将按33% margin tax rate缴纳所得税。是个假设。谢谢！

 

[Green158]

Except stocks and MF , can I trade option or future in the TFSA ?

Q.9 What kind of investments could I hold in my TFSA?
A.9 A TFSA would generally be permitted to hold the same investments as a registered retirement savings plan. This would include mutual funds, publicly traded securities, GICs, bonds, and certain shares of small business corporations.

More info about TFSA ,
Tax-Free Savings Accounts

 

[dkwan]

Wow. what a discussion.