Qualified investments are permitted to be held
in a TFSA. Qualified investments generally include all
RRSP qualified investments, as long as these are arm's-length
investments.
Non-qualified and prohibited
investments may not be held in a TFSA:
Non-qualified investments include,
for example, land and general partnership units.
Prohibited investments are specifically identified
in the Income Tax Act, and include property that
is
a debt of the TFSA holder
shares in, an interest in, or a debt of
a corporation, partnership or trust in which
the holder has a significant (10% or greater) interest, or
a person or partnership that does not deal at
arm's length with the holder, or with a person or partnership
described in (i)
When prohibited or non-qualified investments are
held in a TFSA, taxes will apply. Non-qualified and prohibited
investments are tax differently. See taxes payable re TFSA,
which also discusses proposed amendments regarding these taxes.
Tax Tip: Don't
hold non-qualified or prohibited investments in your TFSA.
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substitute for professional advice. Each person's situation differs, and
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site to your best advantage.
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