Re: TFSA strategies
in response to
by
posted on
Aug 25, 2009 01:33PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
I dont see any advantage in making any withdrawl from you TFSA unless you have a reason for that cash.... as you have to wait till the following year to put it back in.
One might however remove funds to do a flow through placement in one's Cash account. This would allow the tax advantage to be taken.
I have utilized the swap method to move a placement and Wts into the TFSA within the hold period as there is no deamed transfer of ownership.... But it is deamed sold on that date for the purpose of tax....
IE you take a placement for $10,000
The stock is placed in you Cash account with the wts. ( As a unit)
You can swap the stock into the TFSA when it is advantagous to you... IE the stock is trading at the placement price.... $10,000 It is deamed sold and you would put $10,000 as the deamed sold price. You swap it with another investment IE SGR worth $10,000. The beauty of this is that you can use the trading price without actually making the trade... The swap is also much cheaper than the trade in my account.
I certainly don't intend to remove any funds from my TFSA just in case they get stuck outside.... Maybe they change the rule to limit swaps, or the amount you can recontribute. So far this has been very benifical in moving RRSP investments into the TFSA. There are always some oportunities that can be taken that maximize the trade balance in favour of the TFSA. At this point in time the swaps are allowed.... I would bet they plug this hole in the future.