Making Money Minute with Ron Hiebert - Speculation In TFSA’s
The advantage of a TFSA is that investment gains within it are tax free. This makes it tempting for investors to put their speculative investments inside this shelter. If they hit a home run on one of them, the investor won’t have to share gains with the Canada Revenue Agency. The problem with this argument, is most speculative investments lose money. By putting them in a Tax Free Savings Account, you are unable to write losses off against capital gains, like you could in a regular investment account. Thus losing a major tax deduction. For more information, listen to our Making Money podcast hosted by Ron Hiebert and Gord Whitehead at letsmakemoney.ca or CFCW.com.
