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Stock impact report

TFSA Investors: The CRA Is Watching These Red Flags [Yahoo! Finance Canada]

Brookfield Infrastructure Partners LP Class A Subordinate Voting Shares (BIPC) 
A Tax-Free Savings Account (TFSA) feels like a private little money bunker, but the Canada Revenue Agency (CRA) still cares how you use it because the tax-free benefit can get abused. If your account starts to look like a business, a loophole, or a sloppy mess of contributions, the CRA can assess special taxes that wipe out the whole point of having a TFSA. Knowing the red flags helps you protect your tax-free growth, avoid ugly surprise bills, and keep your investing simple. Red flags to watch The first red flag is the classic one: over contributions. The rules sound straightforward , but people get tripped up by timing, withdrawals, and assuming their CRA room number updates instantly. The CRA can charge a 1% tax per month on the highest excess amount in the account for each month the excess stays there, and it can take months before you even get notified because issuers report after year-end. The second red flag is contributing while you are a non-resident. You can still hav Show less Read more
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