THE GREAT CANADIAN TAX THREAD

Canada sucks.

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>>1573781
That's why you're all leeching on our great pot stocks! Die in a pit full of dicks you retard.

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>>1573818
Your country sucks.

If it's anything like IRAs in the state (and I bet it is), contribution limits to tax advantaged accounts are on per person basis. This goes for your IRA contribution and your 401k/403b annual limits. However there is nothing that would stop me from making contributions that total the limit to as many institutions as I like. I don't know about that for Canada.

The exception for this in the states is the 415 limit in employer sponsored retirement plans. I can only put in my contribution limit between two or more employer plans but it I worked for multiple unrelated employers and they all wanted to give me 40k in a nonelective contribution that year then they could.

So I'm guessing it would be possible for you to over contribute because the institutions don't know about each other, but that it would likely require corrective action afterwards when you file tax return.

>>1573821
Ok we got the point, you can go back to /r9k/

>>1573839
Thanks for your valuable contribution :D
Pretty sure it could be similar to US indeed.

> but that it would likely require corrective action afterwards when you file tax return
Meaning what? Like I "alter" my returns to prevent them from seeing I'm contributing to multiple TSFA in multiple institutions? OR something less sketchy? :P

It's total per person, not per account.

>Meaning what? Like I "alter" my returns to prevent them from seeing I'm contributing to multiple TSFA in multiple institutions? OR something less sketchy? :P

Far less sketchy. There will be a way under the law to have one or both institutions return your excess contributions plus applicable earnings (or minus losses) as if it never happened. There will also be some deadline (same as tax filing deadline in USA, April 15th) to have this processed without suffering a tax penalty. In the United States this would be getting taxed not only on the overcontribution (since the 1040 form won't let me deduct over the contribution limit) but also on the return as normal income if done after April 15.

>>1574022
Then in the case where I would have too much. I see my broker can also provide a margin account. Would it be better? I feared the margin side of things just because I didn't wanted to buy on margin by surprise.

>>1574026
That's interesting, I wasn't aware of such options. I'll try to find out if there's a canadian equivalent of doing such. But it sure sounds feasible. Thanks for the help!

Bump for more advices and experiences. Feel free to share anything and ask any questions too. Open thread :-)

BTW I found this neat little tool to calculate profits/losses for stock and crypto trading. Nothing fancy but I used it for a few orders today and it worked great: http://stocktools.brainpad.org

Also today I realized based on a reply ITT that I'm off limits for my TSFAs. So I'm thinking of emptying one of my two TSFAs and put it somewhere else and keep my TSFA for my stock trading so it'll remain tax-free. Any advice?

>>1573758
Your TFSA max contribution is about 45k, after that 45k it increases 5500 each year

When the TFSA was made a few years ago the limit was 5500 and it grows by 5500 each year. The max your allowed to put is 45k, not the initial 5500.

The tax people do it on a per person basis, so they'll see all your accounts and you get the penalty if you pass the limit

>>1574625
Ahhh! I heard that 45k limit before but never got to read it somewhere to secure me. Banks website are so shitty and unclear. Any docs on this?

That's how I initially thought it would work but somebody told me something else and it messed my understanding of it.

Thanks for the help this greatly help! So I'd be safe with how I'm currently setup then :D

>>1574701
I don't have docs but go on wikipedia and you'll see the cumulative total is 46,500$. You can also ask the bank representative when your setting up your account.

Your set up is fine. 46k is only for contributions. If you make 1 million dollars off stocks, there's no penalty and it comes out tax free, so TFSA is very flexible and encourages you to take risks, which you should. Your tfsa at the bank is probably not doing anything so I'd add more money onto the tfsa with the broker if I were you

>>1574743
I found it on wikipedia! https://en.wikipedia.org/wiki/Tax-Free_Savings_Account

So right now it means next year I could add up to 5500 (or the amount they'll announce) right? And that over the years the maximum I can put into it is 46k. So I cannot dump 46k one shot in it.

This makes MUCH MORE sense! THANKS A LOT! You saved me trouble and a whole lot of time!

Leaf Economy

>>1573758
TFSA limit is per person, but your limit may be higher because it is based on when you turn 18 if that was after the program started.
You won't pay taxes but you will pay penalties.

You can look at your limits for everything on Revenue Canada's website.

>>1574807
>So right now it means next year I could add up to 5500 (or the amount they'll announce) right?
Yes

>And that over the years the maximum I can put into it is 46k. So I cannot dump 46k one shot in it.
Wrong on both parts.
Max of $46,500 is only for those who turned 18 in the year the program started, 2009. Your limit may be lower if you turned 18 later.
You can hit your max whenever you like, just don't fuck up the timing on withdrawals and re-deposits or you pay penalties.

>>1574999
thanks anon makes sense

>>1575004
Ok is there any quick way of calculating this? My ARC access is locked for some reason I guess I'll have to call argh. Let's say I'm 25, it would be 7 years cumulatively? Man that part messes with my brain.

How is that possible?
http://www.theglobeandmail.com/globe-investor/retirement/retire-taxes-and-portfolios/how-to-build-a-1-million-tfsa/article29655504/

>>1575020
Call cra. They'll tell you how much room you have in total as it's recorded by your SIN # at both bank & brokerage.

>>1575020
Start at the year you turned 18 and add it up.

2009 $5,000
2010 $5,000
2011 $5,000
2012 $5,000
2013 $5,500
2014 $5,500
2015 $10,000
2016 $5,500

You as an individual can only contribute those amounts, but gains from interest or investments just piles on top. Keep in mind that fees and losses on trades do not count as withdrawals on a TFSA and do not add to the next year's contribution limit - those are just gone.

Your account might be locked because you didn't use it long enough. If that's the case you start from scratch again: create an account, prove your identity with SIN, DOB, etc and whatever random bit of info from an old tax form, and then wait on papers in the mail. After that you can just log in through a bank login parnter unless you have CIBC because fuck them for some reason.

>>1575027
Thanks, nice to know. I'll call tomorrow to unlock my account.

>>1575032

Thanks, that's some very valuable info you've got me! I now feel better about my TSFAs, I was starting to feel like they were ticking time bombs but they sound great after all! That makes so much sense. So I'd be okay and I'd have the whole 46k available.

I'll try to re-open an account, hopefully it'll work that'd be great! Yeah National Bank aren't on the list either. I've got another compatible bank so it should be okay. Thanks a lot again!

I'm the guy that knew ira/401k shit earlier in thread, had no idea Canada had lifetime aggregate limits. That's fucking crazy.

>>1575081
No problem.

I only wish I'd actually dug deeper into it years ago. Until this year I've had all my TFSAs and RRSPs locked into rolling five-year GICs.
Those was alright when I started but interest rates are not as good these past two or three years. Having everything locked down kind of sucks, but I was able to claw back $25,000 of my RRSPs as a home loan. I can start redepositing that next year into whatever type of account I want instead of waiting for the term to end, and I made them use the stuff I just deposited last year so I could get it all back sooner in the end.

>>1575086
401k is a bit like our RRSPs, both are pre-tax accounts that let you contribute and grow interest/gains tax free. We get a tax rebate when we contribute but then we pay tax when we withdraw later. Other than that they are very different: ours aren't tied to employers - anyone can open one with a bank, but employers can also make or match contributions; the annual limit is technically higher, but everyone's limit is based on their income so you get to put in either 18% of your income OR $24,930 (as of 2015) whichever is lower; we also have no early withdrawal penalties and can carry forward anything we don't use in a year. If we withdraw from our RRSPs we never get that contribution space back barring two exceptions: specific types of home (First Time Home Buyer's Plan) and education loans (RESP).

TFSAs are almost the opposite of that. Tax has already been paid on that money, so not only are gains and interest tax free, but so are the eventual withdrawals. The contribution limit is much lower and the same for everyone (see chart above) and is currently tied to the inflation index, except 2015 when they said fuck it until people who didn't understand how it worked complained and got it cut back. You can withdraw any time and you get the space added in the following calendar year.

>>1575101
Forgot one thing: calling them Tax Free Savings Accounts is probably one of the things that confuses people the most, as it can be pretty much any type of registered account. I have some of mine in savings, some in mutual funds, stocks, and GICs. They probably won't change the name because it'd confuse people even more, but they do need to clarify it and make it easier to understand.

>>1575086
I wasn't aware of so many differences. It's indeed hard to fully grasp.

>>1575101
>>1575105
Man you're a goldmine! I think I'll print this thread. I now fully understand how they work thanks to you!

>>1575110
Glad I could help.

Until I looked into the differences myself I didn't realize that 401ks were directly tied to the employer.
I'd heard people mention they needed to transfer stuff and make sure things were in order when they changed jobs but I thought it was just for contribution matching, not that they weren't allowed to just open a retirement account on their own.

>>1575101
>lower the amount back to 5500 cause people complained
idek why, its literally the perfect way for a poor person to not lose anymore money on gain tax

>>1575205
Because you don't understand how it works.

Poor people complained when it went to $10,000 because they didn't have $10,000 RIGHT NOW to deposit.
What they didn't think about is that they keep that space. So now instead of having $10,000 worth of room EVERY YEAR for when you get a bonus or sell your house or get some inheritance now you don't.
Now you get to pay taxes on the remaining $4500's earnings instead.

It's was like bitching that you didn't have enough time to eat ten cookies RIGHT NOW because you're too busy to eat more than five, so why should other people get ten cookies if they have time now?
You could still get your other five cookies later and they would have already
eaten theirs.

Literally EVERYONE was hurt by the reduction because absolutely everyone was on the same level regardless of income.

I've gottn my first real job and after taxes and living expenses I have an extra $1000 each week. Should I just dump it into stocks as soon as I get it or should I wait until the start of each month or something?

>>1573758
6000 liquid? you are supposed to put investments into tsfas