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Non-qualified and prohibited
investments may not be held in a TFSA, RRSP, RRIF, RESP, or RDSP:
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
a debt of the registered plan holder/beneficiary
shares in, an interest in, or a debt of
i. a corporation, partnership or trust in which
the holder has a significant (10% or greater) interest, or
ii. 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 (link