Canada's tax agency is taking a closer look at accounts with significant balances - and is considering other factors - to determine whether accountholders should be deemed to be carrying on a business
There are several factors that must be taken into account when determining whether a taxpayer’s gains from securities constitute carrying on a business
The additional taxes are coming from cases in which the CRA believes a TFSA holder may be “carrying on a business” within the account
Respondents estimate they would contribute an average of $4,325 this year
Contributions to TFSAs are rising while contributions to RRSPs are dropping as more Canadians understand the differences between the two investment vehicles
Some clients still are unclear about the rules regarding contribution limits, withdrawals and penalties
Excluding TFSAs from CRS reporting requirements better aligns CRS rules with those already in place for FATCA, making it easier for Canadian financial services firms
Clients can designate three main types of beneficiaries for their TFSAs: a successor holder a named beneficiary or an estate. Each type is subject to different taxation and transfer rules
TFSAs are among the most useful investment and tax-planning tools
With the TFSA having become a worthwhile option for your clients, it’s time to consider whether an RRSP has the same allure as it once did for certain investors