blog

WITH THE NEW YEAR HERE, YOU NOW HAVE ADDITIONAL TFSA CONTRIBUTION ROOM

With the calendar turning to 2017, every adult will be allowed to contribute an additional $5,500 to their tax-free savings account. That means another $5,500 can be invested and the gains will never be taxed.

If you have been an adult since the TFSA was initiated in 2009 the cumulative contribution total is now $52,000; but exactly how much you can contribute will be different depending on your withdrawals over the past eight years.

If you turned 18 in the past eight years you have been climbing the TFSA ladder from ground zero.

Again, total cumulative contribution amounts would vary if you have made withdrawals, but if you have turned 18 in the past eight year(s) and have never made a withdrawal, your contribution limits are :

2017 CONTRIBUTION LIMITS

AGE IN 2017

CUMULATIVE CONTRIBUTION SPACE

18

$5,500

 19

$11,000

20

$21,000

21

$26,000

22

$32,000

23

$37,000

24

$42,000

25

$47,000

  26+

$52,000

 

If you make a withdrawal, the contribution space is returned to you in the next calendar year.

The Canada Revenue Agency is the ultimate authority on your individual contribution situation. The CRA tabulates total contribution space at the end of each calendar year but might not post it on your individual online profile by March 1. 

TRANSFERING CAPITAL LOSSES TO A SPOUSE – YEAR END TAX PLANNING TIP

Capital losses can be transferred to a spouse or common-law partner by selling the loss shares, and having your spouse purchase those shares within 30 days.  You are denied the superficial loss, but the loss amount is used to increase the cost basis of your spouse’s investment.  Your spouse must hold the shares for more than 30 days for this to work.

Losses will also be disallowed if shares are transferred to a Registered Retirement Savings Plan (RRSP) or to a Tax Free Savings Account (TFSA) at a loss.  You may decide you have a good reason to make a transfer of a loss investment to this type of account.  If so, when completing your tax return, do not enter this disposal on your Schedule 3, as the loss cannot be claimed.

Tax Tip: The superficial loss rules provide a method for capital losses to be transferred to a spouse. The spouse must hold the shares for more than 30 days for this to work, so to do this for 2013 you should act fairly soon.

If you would like to talk about this topic, please feel to Contact Us.

CRA cracking down on middle-income tax cheats

A CRA blitz of 145 serving staff in St. Catharines, Ont., flushed out $1.7-million in unreported tips and gratuities. Chris Ratcliffe/Bloomberg From recent initiatives targeting offshore tax havens and multi-millionaire tax cheats, the Canada Revenue Agency has been cracking its …

Page 1 of 212



bt bt
#
Top