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Post by pasacancha on Dec 2, 2008 1:13:45 GMT -5
I just applied for a TFSA through my broker. I figure why not take advantage of these low DRV prices (depending where we are trading in January).
I haven't verified this is allowed but I was thinking since I read you can trade stock in the account and you can deposit up to $5000 in the first year in each account I don't see why you couldn't transfer existing stock into your TFSA.
So you can open a TFSA account for yourself and another for your spouse. Then transfer DRV stock ($5000 worth) into that account. If DRV is .20 that would mean you can transfer a whopping 25,000 shares into each account. When we get our pay day those shares will have grown tax free and you can withdraw that money at any time without penalty!
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Post by Guest on Dec 19, 2008 14:01:13 GMT -5
I inquired about this at my bank yesterday (CIBC - which is who I trade through) and they said that I could not transfer in existing stock and the way they actually explained it made it sound like stocks could not be done with them at all through the account. Of course this is just one bank and the type of accounts that they are offering. Others will be different (I know TD advertises that you can have stock). Does anyone have any information about CIBC or other banks and how to go about this in the new year? Also is dividend investment from a stock in this account still going to fall under the umbrella of tax free or just if the stock itself is sold at a profit? I don't have a ton of this stock, well I have as much as I can right now, but any cent I can keep out of the man's hand the better for this man. Thanks
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Post by trainboy on Dec 19, 2008 14:32:39 GMT -5
Mr. Guest, You should be able to open a TFSA account with the brokerage you bought your stock at. If you bought it through an on-line virtual broker, then you should get CIBC to connect you with their discount brokerage, and they should have TFSA's suitable to hold stocks. If all else fails, then you can open a TFSA at BMO Investorline or TD Waterhouse, for example. As for dividends, it depends on how they are distributed to you. If they're distributed to your TFSA account, then it will be tax free (be careful of not going over your $5000 yearly total contributions limit). If they're distributed to a non-TFSA account, then normal dividend rules apply. Also, once you put in some stocks into a TFSA, taxes are no longer an issue. You don't pay taxes on ANY withdrawls, whether your stock made or lost money. That being said, if your stock loses money, you can't claim capital losses when you withdraw it. This is a link to BMO Investorline's TFSA site. You should be able to find out all you need to know. www4.bmo.com/vgn/tfsa/en/TFSA.html?WT.ac=e0131_ad2e_ilp&omtrRef=https://www.bmoinvestorline.comTrainboy
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Post by Guest on Jan 20, 2009 13:54:36 GMT -5
Just to follow up for those who helped me with information earlier. CIBC Investors Edge does not do TFSAs with trading as of yet. They will towards the end of 2009. WoodGundy, their advisors were unable to help me with this either until Investors Edge pushes it through. Needless to say I am very unhappy with their service. I will be opening with BMO. Thanks trainboy for the information.
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Post by trainboy on Jan 20, 2009 14:06:23 GMT -5
Glad I could help. I have shares of DRV and all my MacMillan Minerals in a BMO TFSA account and so far so good!
Trainboy
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Post by murph66 on Jan 21, 2009 14:56:34 GMT -5
I tried to switch my MMI shares over to my TFSA through TD Waterhouse and they said that I can't do it. How is this fair when BMO can do it? I spent more than an hour on hold with TD Waterhouse and I am very frustrated. Anyone else have any problems?
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Post by Sam44 on Jan 21, 2009 15:47:20 GMT -5
I also cannot put my MMG into my TFSA (TD Waterhouse) . Friends at DISMAT could not either. Waterhouse would not take them out of my RRSP to put into my non-Tfsa trading account either. Dismat does do this.
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Post by caveman on Jan 22, 2009 0:30:02 GMT -5
i heard the same thing about td. thats pretty dumb but to get around it maybe you could buy the shares in your tfsa and sell them out of your cash account. probably be best to get some professional advice on that first though.
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Post by trainboy on Jan 22, 2009 8:43:29 GMT -5
Might be difficult to purchase or sell a stock that hasn't been listed yet! Trainboy
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Post by caveman on Jan 22, 2009 10:10:33 GMT -5
duh sorry i was on a different train of thought! somehow i just always have drv in my head and was thinking of getting around being able to keep your tax loss ability while putting drv into your tfsa. if you just transfer it i don't think you can use the tax loss in the future.
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Post by trainboy on Jan 22, 2009 10:46:14 GMT -5
That's correct caveman.
If you want to claim the tax loss, you actually have to sell the stock. Then you can re-purchase it 1 month later and then put it into your TFSA account. Of course, the book value in the TFSA account will be the SP on the day that the stock is put into the TFSA.
If you just transfer "in-kind" from an RRSP to a TFSA (you may need to have a non-registered account also, because some institutions won't do it directly, but need an "intermediary" account), then of course there will be no tax-loss claim because that doesn't exist for RRSP's.
Trainboy
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Post by guest13 on May 8, 2009 20:20:00 GMT -5
can we open a joint tfsa account with a $10,000 limit?
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