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RRSPs RRIFs and TFSAs  -> Tax-free savings accounts (TFSAs) -> Investments
Income Tax Act s. 207.01

Tax-Free Savings Account Investments

Qualified Investments

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

Non-qualified and prohibited investments may not be held in a TFSA, RRSP, RRIF, RESP, or RDSP:

bullet Non-qualified investments include, for example, land and general partnership units.
bullet Prohibited investments are specifically identified in the Income Tax Act, and include property that is
bullet a debt of the registered plan holder/beneficiary
bullet 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 below).

Canada Revenue Agency (CRA) Resources

Income Tax Folio S3-F10-C1, Qualified Investments - RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Income Tax Folio S3-F10-C2, Prohibited Investments - RRSPs, RRIFs and TFSAs

Tax Tip:  Don't hold non-qualified or prohibited investments in your TFSA.

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What is Better - TFSA or RRSP?

TFSA Contribution Rules and Limits / Leaving Canada

Don't Overcontribute!

Unused Contribution Room

Next:

TFSA Withdrawals

Asset Transfer (Swap) Transactions

Taxes Payable re TFSA

Marital Breakdown

Death of the TFSA Holder

Back to TFSA main page.

Revised: May 31, 2021

 

 

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