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TFSA and contribution room

krs

Star Member
May 8, 2014
53
1
Hello All,

I have a TFSA account and I started stocks -trading this year with my TFSA account. My allocated contribution room this year is 25K and I invested 20K which has now a value of 35K. If I sell my shares, I will get an amount of 35+K which is above the limit provided by CRA. Do I need to pay taxes on the amount greater than my TFSA limit? Can I have my hard earned money of 25K/contribution limit and trade while keeping all the profits tax free? if yes, what proof do I need to submit to CRA during the taxation period?

What does TFSA contribution limit in my NOA actually mean?

Thanks,
Krs
*Sorry a newbie for TFSA
 
Last edited:

canuck78

VIP Member
Jun 18, 2017
27,850
6,024
Hello All,

I have a TFSA account and I started stocks -trading this year with my TFSA account. My allocated contribution room this year is 25K and I invested 20K which has now a value of 35K. If I sell my shares, I will get an amount of 35+K which is above the limit provided by CRA. Do I need to pay taxes on the amount greater than my TFSA limit? Can I have my hard earned money of 25K/contribution limit and trade while keeping all the profits tax free? if yes, what proof do I need to submit to CRA during the taxation period?

What does TFSA contribution limit in my NOA actually mean?

Thanks,
Krs
*Sorry a newbie for TFSA
Would encourage you to read more online versus this forum. You are allowed to contribute a certain amount per year into your TFSA. The amount of money in your account because of growth or losses is not associated with your contribution limit. The money in a TFSA is tax sheltered so you will not need to pay capital gains on any gains.
 
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krs

Star Member
May 8, 2014
53
1
Would encourage you to read more online versus this forum. You are allowed to contribute a certain amount per year into your TFSA. The amount of money in your account because of growth or losses is not associated with your contribution limit. The money in a TFSA is tax sheltered so you will not need to pay capital gains on any gains.
Thank you. I did search online however there are always some bylaws. For example I got to know that.... if I buy USA company stocks and I get dividends, the dividends are yet taxable even if it's in TFSA.

Thanks,
Krs
 

canuck78

VIP Member
Jun 18, 2017
27,850
6,024
Thank you. I did search online however there are always some bylaws. For example I got to know that.... if I buy USA company stocks and I get dividends, the dividends are yet taxable even if it's in TFSA.

Thanks,
Krs
Yes there are lots of specifics so a forum is not a place to ask all the details.