Tax implications of holding Tesla stocks in your Personal name vs. Corporation vs. TFSA account.

[@1314joycetan]

7:41 I think this is wrong, if you sell and withdraw the money, you can not put it back

[@positivenachiket7136]

Well thats right but you gain that amount in your contribution limit next year.

[@kerrenjanssen9577]

Very informative, thank you! I have watched all your TFSA videos and I am looking forward to refreshing my knowledge when you publish your playbook

[@RealEstateTaxTips]

Glad you like it :) Hoping to publish it end of this month. Turned out there are a lot more to write with respect to TFSA

[@hadamarius]

As much as i know you pay 15% tax for USA stock in your TFSA. Only Canadian stock is tax sheltered. Thoughts?

[@positivenachiket7136]

It is for U.S. dividend stocks only! That means No tax on capital gain!!

[@dub16100]

Wow. Thank you CC

[@viewer7200]

you forgot to mention that TFSA has a limit of $6000 CAD.

[@RealEstateTaxTips]

TFSA contribution limit for 2023 is $6,500. If you have not made contribution and you're a Canadian resident over the age of 18 in 2009, your cumulative contribution room is $88K in 2023

[@viewer7200]

@@RealEstateTaxTips Why the fed gov is so generous? What's in it for them? It would be interesting to know why in savings account at a bank our income would be taxed.

[@1314joycetan]

Ok sorry I m wrong

[@mathewscott7487]

Hi Cherry, great work. I'd love to see a video on the benefits of trading within a corporation

[@RealEstateTaxTips]

I will get there. Subscribe so you will get informed when it comes out. I have to finish the rest of the TFSA videos first. I can do a video on investing in corporation in October.

[@johnnyv5995]

US stocks in a TFSA, are you positive that these earnings are tax free?

[@RealEstateTaxTips]

CRA will not tax US stocks held inside a TFSA, the IRS on the other hand will.

[@prasadranay]

How do you report capital appreciation or interest income for your Corp Investment account while filing your Business Tax return if you’ve not sold any of your positions through the year? Also if the business year end is not the same as tax year end, tax slips aren’t available until late February which poses a challenge. How do you overcome this situation?

[@RealEstateTaxTips]

Hi Rick, sounds like you did quite a bit of research there. Generally capital appreciation isn't taxable in Canada until it is realized. Interest income is reported as specified investment business income if the interest income is generated as a result of doing passive investment. Cut off is always a challenge. A good accountant would be able to assist you to allocate the right amount. All the best.

[@Segubiep]

Great video! A question about dividend paying US stocks: Does the withholding tax still apply on dividends paid out by US companies even if the stock is in your TFSA, for example, AAPL?

[@RealEstateTaxTips]

Yes it still applies as the US government does not recognize TFSA account. Withholding tax still applies. We're releasing a video in terms of the common mistakes that people should avoid when they use their TFSA to invest. Subscribe and you will get notified once it is released.

[@johnnyv5995]

I always assumed that US stocks in TFSA were taxable.

[@RealEstateTaxTips]

You can avoid the withholding tax if it is earned in RRSP

[@riverrap3627]

If my contribution room is $6000 and I buy bitcoin etf and the price rises x100 to $6,000,000 and then I withdraw from my TFSA. Will my contribution room the next year be $6,000,000?

[@RealEstateTaxTips]

Yes

[@RealEstateTaxTips]

But you may also be subject to audit :) to see if the bitcoin trading activities are considered day trading

[@1314joycetan]

I don’t think so

[@imranahmed7280]

Great video very informative, I dont have a TFSA account where should I open one ? Is wealthsimple a good option ? Can I also buy Tesla shares in it ?

[@RealEstateTaxTips]

I am not as familiar with Wealth Simple account but I believe that they just started allowing option trading. Just a word of caution, by now means I am endorsing Tesla as a stock investment. A lot of my clients hold their TFSA in IBKR and other traditional bank trading platforms as well.

[@imranahmed7280]

@@RealEstateTaxTips Thanks but I am told traditional banks charge upto 1% in Fees ...

[@RealEstateTaxTips]

@@imranahmed7280 do your own due diligence... and IBKR charges the least, that's what I was told.

[@PRADEEPPATEL-hx1pe]

Good information. can TFSA opens IN joint name with spouse or it has to be in individual names only?

[@RealEstateTaxTips]

I don't think TFSA can be open in joint name. TFSA contribution limit is restricted by government on an annual basis. However, the TFSA holder can designate someone to receive the benefits if he/she passes away. If you haven't already, click subscribe to our channel and we will talk about this beneficiaries designation in future videos.

[@teresaliang4087]

Great Video Cherry!!! Thanks . Quick question with regards to Crypto trading in my Wealth Simple Cash account is the profits taxable when I withdraw the profits then? We are your clients currently and love the service your office provides. Thanks

[@RealEstateTaxTips]

Thanks Teresa. If you have realized the profit in the cash account (not a TFSA account or RRSP account), then the profit is taxable the year you realize the profit.