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The TFSA's Hidden Fine Print When It Comes to Global Investments [Yahoo! Finance Canada]
Last broadcom inc. earnings: 3/12 04:15 pm
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US:NASDAQ Investor Relations: investors.broadcom.com
Yet many investors fail to unlock the full potential of a TFSA because they don't fully understand the rules. Yes, there are penalties and hidden fine print, but the TFSA benefits far outweigh the tax charged on non-registered accounts. With a TFSA, you can invest in global stocks, ETFs, and mutual funds trading on the designated stock exchanges like the New York Stock Exchange (NYSE), NASDAQ, and the London Stock Exchange (LSE). TFSA's hidden fine print for global investments The TFSA rules are slightly different for global investments, as you must also comply with the tax laws of the country where the investment is made. Still, a TFSA gives you a benefit there. Know your TFSA contribution limit The Canada Revenue Agency (CRA) determines the TFSA contribution limit in Canadian dollars. So when you invest in the NYSE or LSE, you have to convert your investment in Canadian dollars using the exchange rate on the transaction date. This amount should not exceed your TFSA contribution
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