Final answers for your TFSA!

Moneys that go into the TFSA are 'after tax dollars' and the earnings within the TFSA are not subject to taxes.

If you have un-sheltered shares you wish to place into your TFSA, any gain you made while your shares were outside of your TFSA will be subject to capital gains tax. So think, will I make more (un-sheltered) this year, 2010, or next year, 2011? Yes it requires a crystal ball. If you think you'll make more next year then sell your shares in 2010 and buy within the TFSA in 2011. If you just got laid off and think next year will be more sparse, then simply transfer the shares across to the TFSA in 2011. Take the capital gain in the lesser of the two years.

Keep in mind that the tax man at least smirks on capital gains. Only 50% of the gain is taxable. You also may have a loss to carry forward and offset. Also interest paid to make a capital gain is deductible.

You can't claim interest expenses for investments that are sheltered. There is no offset there.

The TFSA is truly designed for the Hail Mary. If you can turn your $5, $10, $15 thousand into millions and live happily ever after without ever sharing another dime with the tax man, bonus! Think of all the good you will be doing, by not sending money to Ottawa you'll be sparing a politician from getting into trouble by squandering or more likely stealing your money.