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Originally Posted by Bobblehead
Could you invest in your own company through an RRSP? They will probably use the same criteria here.
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The Income Tax Act and Regulations prescribe the kinds of property that can be placed as “qualified investments” within RRSPs. While this article is concerned with RRSPs, there are similar eligibility rules for qualified investments in private company shares for Registered Retirement Income Funds (RRIFs) and Registered Education Savings Plans (RESPs). Among these “qualified investments” for RRSPs are shares of private companies that are either: (A) shares in qualifying “small business corporations”; or (B) “eligible small business investments”. The availability of such interests as qualified investments for RRSP purposes creates an alternative for investors with a large cash component in their RRSP who may be looking to supplement the more traditional holdings in their portfolio of registered investments.
The deductibility of RRSP contributions can also make a qualifying investment in a private company more attractive by providing an immediate tax benefit to the shareholder where he or she contributes funds to his or her RRSP to pay for the acquisition of his or her private company shares
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seems so i wouldn't know for sure though.
however,
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TFSAs will generally be allowed to hold the same qualified investments as Registered Retirement Savings Plans (RRSP), except for investments in non-arm’s length entities (including entities of which the account holder is a “specified shareholder” or has an interest of 10% or greater, together with non-arm’s length persons).
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Of course i have no idea what all this means maybe someone can translate. WTF is a non-arms length entity?