Tax Free Saving Account

tqbs

I was making coffee in the kitchen at work just a few minutes ago. On TV, Harper was giving a speech about his policy. I overheard that effective from January 1, (2009, I would guess), we can set up a tax free saving account where we don’t have to pay any tax on the gains of the investment from the account. Unfortunately, I was in a rush, so I didn’t get the whole story. It sounds too good to be true to me. Does anybody have any detailed information?

精打细算

I did a tv interview on omni last week. call me if you want any detail.

WhereNext

It was stated in 2008 Federal Budget. But I do not know whether it is still effect if another party is elected by this election.
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1. age > 18 canadian residents
2. maximum $5000/year
3. unused contribution can be forwarded to next year

tqbs

原帖由 cxue 于 2008-10-7 12:27 发表
7 [2 a. K5 P/ r5 L1 M. L( f6 _' \It was stated in 2008 Federal Budget. But I do not know whether it is still effect if another party is elected by this election.
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! }- P: y3 E/ u& r8 r% rHightlights:
, B& K- H$ b( k  _1. age > 18 canadian residents
' r  ]+ i( B6 m6 w/ V2. maximum $5000/year
...

So we can contribute to the account this fiscal year? Thanks

Zhujiaolian

原帖由 tqbs 于 2008-10-7 11:06 发表
( y2 B4 @! q9 G& j0 @" ]I was making coffee in the kitchen at work just a few minutes ago. On TV, Harper was giving a speech about his policy. I overheard that effective from January 1, (2009, I would guess), we can set up a ...

7 X: O* ^+ a. {7 r& {  AI think it is not an investment account, it is a saving account and you won't gain a lot on only interest. Well, yes you still save some dollars on the interest earning. I am not sure if I am right.

tqbs

原帖由 Zhujiaolian 于 2008-10-7 14:21 发表

- P5 l. ^1 T7 q- WI think it is not an investment account, it is a saving account and you won't gain a lot on only interest. Well, yes you still save some dollars on the interest earning. I am not sure if I am right.

: B3 V" K( O& B' P9 s; a. ^My guess is that it's just like RRSP. The only difference is you'll have pay tax when you take money out of RRSP, while you don't have to pay anything when you take money out of this Tax Free Saving account. As for how you want to invest with the money in the account, it doesn't matter.

wpbaby

原帖由 Zhujiaolian 于 2008-10-7 14:21 发表

I think it is not an investment account, it is a saving account and you won't gain a lot on only interest. Well, yes you still save some dollars on the interest earning. I am not sure if I am right.

I think you are right. Though I don't know the detail, we can judge using the common sense it should apply  to the interest of saving account only.

精打细算

nope.
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visit my site www.clfinancial.ca for detail

精打细算

Plan holders will be able to buy stocks, bonds, mutual funds, GICs, and shares of qualifying small business corporations – the same types of investments already available inside registered retirement savings plans.

tqbs

原帖由 精打细算 于 2008-10-7 17:01 发表
: `$ _% ^% g4 v% _$ C2 x; _Plan holders will be able to buy stocks, bonds, mutual funds, GICs, and shares of qualifying small business corporations – the same types of investments already available inside registered retirement ...

Thanks.
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Now when you think about it, it's not that a big deal. It’s kind of like a gamble. You are betting that the investments from the account will make money. In that case you don’t have to pay tax for the capital gains, profits. etc. On the other hand, if the investments lose money, I would imagine you won’t be able to use the capital loss to balance out your capital gains from other accounts either. Is that right?
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: g; S7 ~/ c; x- L7 R4 E[ 本帖最后由 tqbs 于 2008-10-7 22:51 编辑 ]

精打细算

my guess is, yes, like RRSP, if you occur lost on your investment, you can only use it for the same account type.

RowlandSpring

anyway,to us is a good news. Thanks