Contributions can be made by Canadian residents aged 18 or over
Up to $5,000 per year can be contributed, with unused contribution room being carried forward.
The $5,000 annual contribution limit will be
indexed to inflation in $500 increments. At the current rate of
inflation, the limit will increase to $5,500 in 2012.
There is no lifetime limit to the amount of
contributions.
If a person has contribution room, but no funds to
contribute, they may contribute funds given to them by their spouse or
common-law partner, with no attribution of income to the spouse.
Contributions can consist of in kind
contributions of qualified investments. At the time the
investments are contributed, there is a deemed
disposition. Any resulting
The easiest way to establish a record of your TFSA
contribution room is to file a tax return annually, even if you have
no taxable income. Your TFSA contribution room will then be
reported on your notice of assessment. However, Canada Revenue
Agency says that Individuals who have not filed returns for prior
years (because, for example, there was no tax payable) would be
permitted to establish their entitlement to contribution room by
filing a return for those years or by other means acceptable to the
CRA.
Tax
tip: If you have a loss on your investment, don't transfer it to your TFSA.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
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