TFSA for 2010 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Clarkey · 01-01-2010, 01:06 PM

Do you guys know if a guy has to open a new Tax Free Savings Account for 2010? I've got trading accounts set up for my wife and I and I'm wondering if I can just dump an extra $5000 each into these (now that it's Jan. 1) or whether it has to be a new separate account?

BlackArcher101 · 01-01-2010, 01:11 PM

I believe you use the same account, like an RRSP. But don't quote me on that.

7uongo · 01-01-2010, 01:14 PM

you dont have to open a new account

Slava · 01-01-2010, 02:51 PM

It's just like a RRSP and you can add $5k now.

Clarkey · 01-01-2010, 08:29 PM

Thanks, I was told otherwise and thought it was how you guys have stated.

Regulator75 · 01-01-2010, 08:31 PM

Yup, just did ours tonight. Same account.

SeeGeeWhy · 01-02-2010, 02:17 PM

Can you use up your contribution room by transferring in securities that were held outside of a registered account before?

I'm assuming that you can, and that your ACB of the contribution would be based on the current market value (not the book value).

For example, I hold 1000 shares of ABC that I purchased for $5/share in 2006, but are now trading for $10/share. If I would like to use up my TFSA contribution room by transferring in these shares, I would only be able to move 500 of the 1000 into the TFSA (500 * $10/share = $5000).

Is this scenario legit, and if so... are there any tax consequences to doing so? I'm assuming you'd have to pay tax on the capital gains ($5/share on the 500 shares transferred) when doing this.

cSpooge · 01-02-2010, 09:20 PM

Quote:

Originally Posted by SeeGeeWhy

Can you use up your contribution room by transferring in securities that were held outside of a registered account before?

I'm assuming that you can, and that your ACB of the contribution would be based on the current market value (not the book value).

For example, I hold 1000 shares of ABC that I purchased for $5/share in 2006, but are now trading for $10/share. If I would like to use up my TFSA contribution room by transferring in these shares, I would only be able to move 500 of the 1000 into the TFSA (500 * $10/share = $5000).

Is this scenario legit, and if so... are there any tax consequences to doing so? I'm assuming you'd have to pay tax on the capital gains ($5/share on the 500 shares transferred) when doing this.

just make sure that the are qualifying investments before you do it. There is a huge penalty for fataing up TSFAs (20% + 1% each month they're in there).