Opzioni Trading Tfsa Conto

Tax-Free conto di risparmio - TFSA definizione di Tax-Free conto di risparmio - TFSA Un account che non fa pagare le tasse su tutti i contributi, interessi attivi, dividendi o plusvalenze. e può essere ritirato esentasse. conti di risparmio esentasse sono stati introdotti in Canada nel 2009 con un limite di 5.000 euro all'anno, che viene indicizzato per gli anni successivi. Nel 2013, il limite di contributo è stato aumentato a 5.500 ogni anno i contributi non sono deducibili dalle tasse e ogni stanza non utilizzata può essere portato avanti. Questo conto di risparmio è disponibile per gli individui di 18 anni e più anziani e può essere utilizzato per qualsiasi scopo. SMONTAGGIO risparmio fiscale-Ragionieri - TFSA I vantaggi di un TFSA venire dall'esenzione della tassazione su qualsiasi reddito da investimento. Per illustrare questo, consente di dare due risparmiatori: Joe e Jane. Joe mette il suo denaro in un investimento facendogli 7 all'anno Jane fa la stessa cosa, ma all'interno di un TFSA. Se sia Jane e Joe fare un investimento somma forfettaria 5000, che hanno ciascuno 5.350 alla fine dell'esercizio. Jane potrà ritirare tutti i 5.350 senza alcuna penalità, mentre Joe sarebbe tassato sul 350 ha guadagnato. Un conto di risparmio di pensione registrati (RRSP) è per la pensione, mentre un TFSA può essere utilizzato per salvare per niente altro. Conto di risparmio esentasse differisce da un conto dei ritiri registrato in due modi principali: 1. depositi in un piano di pensionamento registrati sono dedotti dal reddito imponibile. I depositi in un TFSA non sono deductible.2 fiscale. Prelievi da un piano di pensionamento saranno pienamente tassati in base a tale anni di reddito. I prelievi da un TFSA non sono tassati. Il TSFA affronta alcuni dei difetti che molti credono esistono nel programma RRSP, tra cui la possibilità di restituire i prelievi ad un TFSA in un secondo momento senza ridurre inutilizzato contributo room. TFSA voci di verità Tre mesi fa, Scott Bowers ha ottenuto un brutto colpo. Il 34-year-old Barrie, Ontario. residente ha ricevuto una lettera dal fisco dicendo che doveva un extra 214. Che cosa ha fatto di sbagliato Secondo il Canada Revenue Agency, che aveva eccessivamente contribuito alla sua Tax-Free conto di risparmio (TFSA). Risulta, lui non era l'unico. Un totale di 70.000 persone hanno ricevuto avvisi di governo li rimprovero per spalare troppi soldi nel loro TFSAs. Molti hanno dovuto pagare una tassa di rigore, e innumerevoli altri si trovarono passare ore al telefono per spiegare la loro situazione personale inutile CRA, o la compilazione di risme di scartoffie. Quando Tax-Free conti di risparmio sono stati introdotti nel gennaio 2009, i canadesi amato themafter tutto, il denaro potrebbe crescere più velocemente e non c'era nessuna penalità per i prelievi. Ma il loro utilizzo in modo corretto può essere complicato, e anche alcuni dei pro sono confusi. Weve sentito diverse storie di consulenti finanziari che danno consigli TFSA ai propri clienti questo è confuso, fuorviante o semplicemente sbagliato. È un peccato, perché TFSAs è possibile risparmiare un sacco di soldi, se li si usa destra. Come si può evitare un eccesso di contribuire e di ottenere il massimo dal vostro semplice TFSA. Prova la tua conoscenza con le affermazioni vere o false che seguono, e lasciare che MoneySense si trasformi in un esperto TFSA in soli 15 minuti. TFSAs sono un tipo di alto interesse conto di risparmio, vero o falso falso. Mentre le istituzioni finanziarie eseguite campagne di incoraggiare le persone ad aprire un conto di risparmio TFSA-alto interesse, quello non è l'unica opzione. Questo equivoco deriva dal nome della productTax-Free conto di risparmio, dice Gordon Pape, autore di The TFSA Ultimate Guide. È possibile aprire un TFSA sotto forma di un conto di risparmio di alto interesse, ma se si apre un TFSA attraverso la vostra mediazione di sconto, si può mettere praticamente qualsiasi investimento che si desidera in esso: GICS, azioni, obbligazioni, fondi comuni di investimento e di Exchange - traded funds (ETF). Come un RRSP, un conto TFSA non è un tipo di prodotto di investimento, il suo un account con specifiche proprietà fiscali i thats registrato con il CRA. È possibile ottenere un rimborso fiscale quando si contribuisce ad un TFSA, vero o falso falso. A differenza di un RRSP, si ha a pagare le imposte sul denaro che si deposita sul tuo conto TFSA. I risparmi fiscali provengono dalla crescita sul investmentsif si riceve interessi o dividendi da partecipazioni all'interno di un TFSA, non dovrete pagare le tasse su tale reddito. Né si dovrà pagare l'imposta sulle plusvalenze nel tuo account. È possibile contribuire fino a 5.000 un anno per un TFSA, vero o falso vero. Finché sei un residente canadese più di 18 anni, si può contribuire fino a 5.000 un anno. Se non usare la vostra camera contributo di quest'anno, si può utilizzare l'anno prossimo, vero o falso vero. Inutilizzato stanza contributo per il risparmio esentasse conto accumula e si può utilizzare nei prossimi anni. Devi pagare le tasse sui soldi si ritira da un TFSA, vero o falso falso. Aiuta a pensare al TFSA come immagine speculare del RRSP. Con un RRSP voi non pagare le tasse sui soldi che va in, ma si fa pagare le tasse sul denaro che viene fuori. Con un TFSA, si fa pagare le tasse sui soldi che va in, ma voi non pagare le tasse quando si esce. Si può prendere soldi da un TFSA e rimetterlo in seguito, vero o falso vero. Ma assicurarsi di sapere le regole. Se si ritira denaro, è possibile recontribute, ma non nello stesso anno solare. Come molte anime sfortunate scoperto, se i vostri contributi superano il limite per l'anno, youll essere soggetti ad una tassa di 1 ogni mese la quantità di over-contributo. Questo vale anche se hai fatto prelievi da conto che durante l'anno. Ad esempio, consente di dire il limite di contributo TFSA per l'anno è di 5.000. Se mettete 5.000 nel tuo conto, poi ritirato 2.000, poi più tardi quello stesso anno, hai depositato altri 2.000, allora si sarebbe 2.000 oltre il limite. Alla fine di giugno, il ministro delle Finanze Jim Flaherty ha rilasciato una dichiarazione riconoscendo che vi è stata una confusione molto a questo problema. Le persone che avevano ricevuto lettere dal CRA dicendo che avevano un eccesso di contributo hanno detto che potrebbe evitare di pagare la tassa se hanno fornito il CRA con ulteriori informazioni sulla loro situazione entro agosto 3. Il CRA sta riesaminando queste informazioni e farà decisioni su un base individuale. Se hai ricevuto una lettera di un eccesso di contributo e che non ha ancora rispondere, non è troppo tardi. Anche se la scadenza di agosto 3 è passato, il CRA dice che si dovrebbe ancora rispondere, sia attraverso il pagamento della tassa o l'invio di ulteriori informazioni per contestare l'imposta. Il CRA ricorda, inoltre, che chiunque abbia un eccesso di contribuito alla loro TFSA nel 2010 per ritirare i fondi in eccesso nel più breve tempo possibile per ridurre sanzioni future. Se i vostri investimenti diminuire di valore, è possibile aggiungere più soldi sul conto, vero o falso falso. È possibile inserire solo in un importo fino alla vostra camera contributo accumulato, a prescindere da come eseguono i vostri investimenti. Quindi, se il vostro stock vengono rovinati, youll devono aspettare fino al prossimo anno per ricaricare il conto se non avete inutilizzato camera contributo sinistra. Il Canada Revenue Agency vi darà una dichiarazione annuale che mostra quanto si può contribuire alla vostra TFSA, vero o falso vero. Il tuo avviso di accertamento mostra sapere quanto TFSA contributo camera avete all'inizio del prossimo anno fiscale. Ciò significa che il Avviso 2010 della valutazione mostrerà quanto si può contribuire a partire dal 1 ° gennaio 2011. Si può avere un solo account TFSA, vero o falso falso. È possibile aprire tutti gli account TFSA come volete, ma fate attenzione. Hai il permesso di dividere la stanza contributo tra due o più account TFSA a diverse istituzioni, ma i contributi combinati necessario aggiungere fino a meno che il vostro limite annuale. Si dovrebbe anche fare attenzione durante il trasferimento di denaro da un TFSA ad un altro. Se hai appena prelevare il denaro dal vostro vecchio TFSA e depositarlo in uno nuovo, che il denaro potrebbe essere considerato come un contributo fresco e potrebbe mettere sopra il limite. Invece, avere il vostro nuovo trasferimento istituto finanziario il contenuto del vecchio TFSA. Voi non incappate in qualche problema se lo si fa in questo modo, dice Gordon Pape. TFSAs sono un ottimo modo per risparmiare per obiettivi di risparmio a breve termine come l'acquisto di una nuova auto, vero o falso vero. In un primo momento, TFSAs sono spesso utilizzati come conti di risparmio di emergenza, che è una bella idea. Con il vostro contributo limitato a solo 10.000 fino ad oggi, era difficile usarle per molto altro. Ma, come l'importo che si può tenere in TFSA cresce, può essere utilizzato per obiettivi più ambiziosi. È possibile utilizzare il TFSA per accumulare denaro per cose come un viaggio intorno al mondo o in auto nuova. A differenza di RRSP, è solito essere tassati quando si prende il denaro, e il denaro si accumulano più velocemente che in un normale account a causa della crescita esentasse. TFSAs sono il modo migliore per risparmiare per la pensione, vero o falso falso. Ci sono delle eccezioni, ma per la maggior parte delle persone, RRSP sono ancora la prima scelta per costruire il vostro gruzzolo di pensionamento. Ive ha eseguito i calcoli per tonnellate di diversi clienti, e praticamente in ogni uno, rende più senso usare un RRSP, dice Karin Mizgala, un pianificatore finanziario in base a tariffa in British Columbia. Quello è perché con un RRSP, si ottiene l'imposta sul reddito indietro il denaro si contribuisce. Quando si ottiene il rimborso, può essere investito subito. E quando si incassare le RRSP nei tuoi anni d'oro, probabilmente youll essere in una fascia di reddito più bassa, in modo youll pagare meno tasse di quello che avrebbe pagato quando si mette i soldi in. A causa di questo, TFSAs sono meglio utilizzato una volta youve maxed i tuoi RRSP, o se si vuole investire denaro che il youll spendere prima del pensionamento. L'unica eccezione è se si pensa che si potrebbe essere fare più soldi dopo il pensionamento di quanto hai fatto quando si stava lavorando. Se si effettua meno di 35.000 un anno quando sei a lavorare, per esempio, questo è una possibilità reale grazie alle prestazioni di vecchiaia del governo, in modo da youre probabilmente meglio risparmiare in un TFSA. E se hai intenzione di andare in pensione in una giurisdizione con aliquote fiscali più elevate, oppure si riceverà una pensione generosa mentre lavorava in un altro lavoro in pensione, si consiglia inoltre di utilizzare il TFSA per una parte del vostro risparmio di pensione. È possibile utilizzare il TFSA come garanzia di prestito, vero o falso vero. Si arent uso consentito dei beni all'interno del vostro RRSP come garanzia per un prestito, ma è possibile utilizzare il vostro risparmio fiscale-Free account per backstop vostro prestito. Questo potrebbe rivelarsi utile in uno scenario in cui è necessario un anticipo in contanti per affrontare una situazione di emergenza, ma il denaro è legato all'interno di un locked-in GIC nel TFSA. Si può anche prendere in prestito denaro per investire nel vostro TFSA, anche se non puoi scrivere fuori l'interesse come una detrazione fiscale. È possibile scaricare un magazzino di perdere nel vostro TFSA di rivendicare una perdita di capitale, vero o falso falso. Per un po ', i blog finanziari ronzavano con quello che sembrava un metodo ingegnoso per l'attivazione di una perdita di capitale senza vendere uno stock. Ma si scopre l'uomo fiscale doesnt permettono. Questo è il modo in cui il programma avrebbe dovuto lavorare: Diciamo che ha avuto alcune impressionanti plusvalenze sul portafoglio azionario un anno, e si era alla ricerca di alcune perdite di capitale per compensare loro, quindi si può pagare meno tasse. Normalmente, l'unico modo per far scattare tali perdite sarebbe quella di vendere le scorte che avevano valore perduto. La voce in giro è che se non ha ancora desidera vendere i vostri stock perdenti (perché, per esempio, si pensava che stavano per riprendersi l'anno prossimo), si potrebbe invece metterli nel vostro TFSA, che permetterebbe di dichiarare la perdita, anche se si continuano a detenere il magazzino. In teoria, dovrebbe funzionare in questo modo, perché quando si trasferisce un magazzino vincente per il vostro TFSA, è effettivamente innescare una plusvalenza imponibile. Ma ingiusto come sembra, il Canada Revenue Agency semplicemente non consente di rivendicare una perdita in conto capitale sui contributi TFSA. È possibile vendere le azioni, attendere 30 giorni, e poi comprare di nuovo all'interno del vostro conto TFSA, ma controllare le regole di perdita superficiali prima. Si dovrebbe tenere obbligazioni e GICs all'interno del vostro TFSA, perché l'interesse che producono normalmente tassati ad un tasso superiore rispetto agli altri redditi da investimenti, vero o falso vero. Interessi da conti di risparmio, obbligazioni e GICs è tassato ad un tasso superiore rispetto ai dividendi o plusvalenze, in modo da beneficiare di più da tenerli in un TFSA. Tuttavia, Gordon Pape osserva che i tassi di interesse sono bassi in questo momento, quindi si può ancora ottenere un botto migliore per ogni dollari di investimenti per la detenzione di scorte, ETF o fondi comuni di investimento nel vostro risparmio esentasse conto. Anche se 50 delle plusvalenze sono già esentasse, l'altro 50 sono tassati. Se si effettua una significativa plusvalenza, si sta andando ad essere in grado di mantenere il tutto, Pape dice. E 'anche importante ricordare che non dovreste lasciare che questioni come imposte dettare quali tipi di investimenti si acquista in primo luogo. Altri fattori, come la vostra tolleranza al rischio e orizzonte temporale, hanno la precedenza. Se sei un risparmio fino a comprare una macchina a breve termine, per esempio, si dovrebbe andare con un alto interesse conto di risparmio o GIC rimborsabili. Tuttavia, se siete investire per il lungo termine e in grado di gestire i mercati altalene, azioni, fondi comuni o ETF sarà una scommessa migliore. È possibile tenere un portafoglio Couch Potato all'interno di un TFSA, vero o falso vero. Ma il limite di contributo TFSA influirà come lo si imposta. A partire da quest'anno, l'importo massimo del contributo stanza si potrebbe avere è di 10.000 (il limite sarà colpito 15.000 nel 2011). Con un portafoglio di queste dimensioni, youll vuole impostare il Couch Potato portafoglio utilizzando indice fondi comuni di investimento, come i fondi di e-serie TDS, piuttosto che exchange-traded funds (ETF). In generale, dice l'indice MoneySense investire editorialista Dan Bortolotti, se hai meno di 30.000 nel vostro portafoglio, i fondi e-Series sono più costo-efficiente di ETF. (Per ulteriori informazioni su questo, vedere diventare un investitore di poltrone con meno di 5.000.) Si dovrebbe indicare il vostro coniuge come un beneficiario, vero o falso falso. Se si desidera che il coniuge o convivente di avere accesso al tuo account dopo la tua morte, lui o lei dovrebbe essere designato come detentore del successore. In questo modo il vostro coniuge avrà automaticamente il controllo del conto dopo la tua morte, il che significa che lui o lei sarà in grado di ritirare il denaro esentasse o mantenere gli investimenti in conto. (Si noti che funziona in modo diverso in Quebec). Se si desidera che le attività nel tuo account per andare a qualcuno oltre il vostro bambino spousea, un amico o un charityyou possono assegnare loro un nome come beneficiario del TFSA. Essi riceveranno i beni esentasse, ma l'account verrà chiuso, e dovranno pagare le tasse su tutti i profitti guadagnati dopo la tua morte e prima che l'account sia chiuso. In realtà, è possibile denominare sia un supporto successore ed un esempio beneficiaryfor, un uomo potrebbe nominare la moglie come titolare successore e il suo figlio come beneficiario, il che significa la moglie sarebbe ottenere il denaro dopo la sua morte. Alla morte mogli, finché lei non cambiare il beneficiario, i fondi sarebbero poi passati al bambino. TFSAs può essere utilizzato per bypassare imposta di successione sulle successioni, vero o falso vero. TFSAs sono un ottimo modo per passare sulla ricchezza ai vostri eredi in un mannernot fiscale efficiente solo essi evitare di pagare l'imposta sulle plusvalenze sulla crescita degli investimenti prima della morte, ma se li si designa come beneficiari, i soldi consentirà di bypassare la vostra volontà . Ciò significa che non sarà soggetta ad imposta di successione, dice Allison Marshall, un consulente di consulenza finanziaria con RBC Dominion Securities. Purtroppo, c'è ancora un sacco di confusione per quanto riguarda le regole di successione, anche tra i professionisti della finanza. Questo è in parte perché le regole provinciali per quanto riguarda TFSAs erano lenti a rotolare fuori. Se si imposta il TFSA nella fase iniziale, si potrebbe desiderare di tornare al vostro istituto finanziario e verificare di aver completato tutte le pratiche burocratiche in modo corretto. È possibile utilizzare TFSAs per scissione di reddito tra le coppie, vere o false vero. Normalmente, reddito e delle plusvalenze di capitale sono tassati in nome di chi guadagnato il denaro utilizzato per acquistare gli investimenti. Ma per gli investimenti all'interno di un TFSA, quello non è un issuebecause i redditi e le plusvalenze tassate arent affatto. Così, il capofamiglia principale in una coppia potrebbe aprire un conto TFSA nel suo coniugi nome, poi dare i soldi coniuge a mettere in conto, spiega Karin Mizgala. Avendo due TFSAs, si avrà raddoppiato la vostra camera contributo, e se il percettore di reddito più elevato contribuisce efficacemente a entrambi gli account, nel corso degli anni che potrebbe tradursi in una riduzione considerevole del disegno di legge coppie fiscale. I prelievi dal tuo TFSA si tradurrà in clawback da benefici governativi come Old Age Security, vero o falso falso. Una delle grandi cose su TFSAs è che quando si prende i soldi fuori, doesnt contano come reddito. Questo significa che tu non pagare le tasse su di esso, non ci vorrà influenzare il vostro credito GST o assicurazione per l'occupazione, e voi non clawback volto sul tuo integrare il reddito garantito o Old Age Security. Il suo altro motivo per cui le persone che guadagnano salari bassi sono meglio risparmiare all'interno di un TFSA di un RRSP. 141 commenti su ldquo TFSA verità voci amp rdquo Inoltre molti pensano, se non hanno aperto un TFSA scorso anno nel 2009, hanno perso la davverop per 5000 per lo stesso anno. Il fatto è che, anche se non si apre un TFSA scorso anno (asssuming eri idoneo ad aprire uno ad essere 18 anni di età), la camera per il 2009 si applica ancora. Così, la vostra camera per il 2010, indipendentemente da quando è stato aperto il TFSA è 10000, se tu fossi 18 anni nel 2009. Andy il 5 ottobre, 2010 alle 11:38 La mia nipotina compiuto 18 anni nel mese di giugno di quest'anno. Lei è permesso una stanza apporto di 5000.00 per aprire un conto TFSA, dire, nel dicembre di quest'anno Gerald Chip, il 9 ottobre 2010 alle 22:59 Se you8217re ancora sul recinto: Prendi il tuo auricolare preferito, a testa in giù ad un Best Buy e chiedere di collegarli in un Zune poi un iPod e vedere uno che suona meglio per voi, e che l'interfaccia fa sorridere di più. Poi you8217ll sanno che è giusto per te. Ottimo post. Stavo controllando continuamente questo blog e sono rimasto colpito informazioni estremamente utili in particolare l'ultima parte mi preoccupo per tali informazioni molto. Ero alla ricerca di questo alcune informazioni per un tempo molto lungo. Grazie e buona fortuna. Delilah il 22 marzo 2011 alle 08:56 Questa può essere una domanda che mangio una passione duratura sconcertante circa. I over maggior parte delle persone oggi abbandono come degno di nota questo problema è. Suppongo che qui è il fondamento su cui un grande subacquei altre cose sono costruiti in dimostrano che facciamo questa mossa vergognosa, ci sono plentifulness delle conseguenze disastrose nel destino inseparabili. Di conseguenza, dobbiamo essere prudenti e deliberare su circa il modo in cui l'appetito per avvicinarsi a questo argomento. Do la colpa al paragrapher dopo aver dato un'apertura immaginato prendere un colpo a verso di essa. thai cam girls il 4 aprile, 2011 alle 03:47 Beh, it8217s decente, ma pensare a opzioni aggiuntive we8217ve arrivati ​​qui ti dispiace fare un altro articolo su di loro come bene grazie trovato questa piccola nicchia penetranti attraverso le meraviglie di Google. I8217m un investitore molto conservatore me e I8217ve leggere alcuni di quei libri di investment banking (principalmente Liar8217s Poker e The Big brevi) 8211 roba interessante ma io wouldn8217t osa mettere i miei soldi in attività rischiose o titoli spazzatura. Guardate cosa è successo a Milken 8211 in prigione I8217d raccomandare davvero leggere su questo articolo premiato scritto da Delos Chang sulla SampP 500. maglie molto bene con A zonzo per Wall Street e può davvero fornire qualche grande senso per la vostra carriera investire. Ancora una volta, I8217m nessun commerciante di giorno e ho don8217t hanno un vantaggio informativo su chiunque 8211 ma sono sicuro come l'inferno sai che io voglio fare un ritorno decente con i soldi che ho messo sul mercato. Con tutte le guerre di droga in corso, chissà quando potrebbe scomparire Sono senza parole. Si tratta di un ottimo blog e molto attraente troppo. Grandi dipinti That8217s in realtà non molto proveniente da una casa editrice dilettante come me, ma surely8217s tutto quello che potevo dire dopo l'immersione nei tuoi post. Grande grammatica e vocabolario. Ora, non come altri blog. È, in realtà, riconosci quello che stai parlando di circa troppo. Tanto che appena mi ha fatto bisogno di esplorare più. Il tuo blog ha rivelarsi un trampolino di lancio per me, il mio amico. futuro cassiere il 18 aprile 2011 alle 02:23 Hi there, I8217ve ha lavorato con vari operatori e potenziali acquirenti nella zona di gestione patrimoniale. Può veramente confermare a questo articolo. Ben scritto pure. I8217d preferisce aggiungere il mio giusto rivelare dall'esperienza se me lo permetterà. Di solito, non ritengo il mio tempo per farlo, quindi questo è considerato con la norma per me. guida investimento regolare va: A meno che, naturalmente, si capisce veramente cosa you8217re facendo e io implicare davvero sapere che si dovrebbe andare veramente fondo indicizzato reciproco SampP 500 (guarda NOVA post di Delos Chang sull'analisi technicalfundamental). Il poster qui ha un sacco di grande dati e della percezione, tuttavia, il resto di noi comuni mortali we8217re più soddisfatti assicurando un ritorno infallibile in quel 1000 che la nonna ci ha dato invece di buttare tutto in titoli spazzatura. Guardate cosa realmente accaduto a Milken. I8217ve lavorato con Morgan Stanley e I8217ve parlato con alcune persone nel business degli hedge fund e 8211 quasi tutti potrebbero essere d'accordo. Se volete maggiori dettagli, I8217d dire passare a dare un'occhiata alle articolo NOVA Delos Chang Ho offerto al di sopra o A zonzo per Wall Street. Entrambi propongono proprio gli stessi argomenti 8211 pregate che Renita Gear convince il 18 aprile 2011 alle 20:13 sento che può essere un aspetto affascinante, mi ha fatto un po 'immagino. Grazie per scatenando mio cappello in considerazione. Talvolta ho così tanto in un solco che ho semplicemente sento davvero come un disco. Acquista Pizzo parrucche il 19 aprile 2011 alle 02:51 Grazie per questi puntatori. Una cosa che dovrebbe anche credere che sia le carte fatto di credito dotate di un tasso 0 spesso attirare i consumatori a tasso zero di interesse, accettazione immediata e facile equilibrio trasferimenti on-line, tuttavia attenzione del fattore superiore che probabilmente invalida la corrente 0 facile strada annuale percentuale più si buttare fuori nella cattiva casa in fretta. tavolo il 19 aprile 2011 alle 15:13 149.214.971.497 15121510149715141497 150014921502150014971509 150.014.991.501 15.061.500 148.815.141.512 150014891504149714971514 149515001493150414931514. 14891495149315021512 148815001493150214971504149714931501 8211 1495149315021512 1488149715141503. 1506150214971491. 149.315.001.488 15021495150014971491. Fantastico blog Avete suggerimenti e consigli per aspiranti scrittori I8217m intenzione di iniziare il mio blog presto, ma I8217m un po 'perso su tutto. Ti consigliamo iniziando con una piattaforma gratuita come WordPress o andare a fare una opzione di pagamento Ci sono tante scelte là fuori che I8217m totalmente confuso. Eventuali suggerimenti apprezzarlo per cominciare, mi piace il vostro primo paragrafo che mi ha agganciato in gran parte che in realtà I8217ve collegano questa pagina al mio sito. Andare avanti e guardare: deloschangdelos-Chang-siti-love Continuando con quello che avevo da dire: studio I8217ve molti degli articoli sul tuo sito ora, e io in realtà come il vostro stile di blogging. Io in più al mio weblog preferiti record di sito e sarà il controllo indietro presto. Assicurarsi di avere un'occhiata al mio sito web come bene e mi permette sapere ciò che si crede. Rufus Nepa il 20 aprile 2011 alle 05:29 sono fantastico merce da te, amico. Ho capire la vostra roba precedente e si sono solo estremamente meraviglioso. Mi piace molto quello che avete acquisito qui, certamente come quello che stai dicendo e il modo in cui lo dici. Si rendono piacevole e ancora cura per mantenerla sensibile. I can8217t l'ora di leggere molto di più da voi. Questo è in realtà un sito web meraviglioso. Mi capita di scrivere per farvi essere consapevoli di ciò che una esperienza formidabile mio figlio cousin8217s ha attraversato con la tua pagina web. Raccolse numerosi problemi, in particolare come è come possedere un carattere di coaching ideale per avere altre persone solo comprendere appieno argomento complesso specificato. È davvero superato le nostre propri risultati attesi. Mi rendo conto per sfornare così importante, degno di fiducia, edificante per non parlare di semplici consigli su questo argomento a Janet. Superba blog Avete qualche suggerimento per aspiranti scrittori I8217m intenzione di iniziare il mio sito web presto, ma I8217m un po 'perso su tutto. Suggeriresti iniziando con una piattaforma gratuita come WordPress o andare a fare una opzione di pagamento Ci sono tante scelte là fuori che I8217m completamente confuso. Eventuali suggerimenti Molte grazie ciao là e grazie per le informazioni che ho sicuramente raccolto nulla di nuovo da qui. Ho fatto però competenza diversi punti tecnici di utilizzare questo sito, ho provato a ricaricare il sito web un sacco di volte precedenti al ho potuto farlo per caricare correttamente. Mi era stato chiedendo se il vostro web hosting è OK Non che io mi lamento, ma lenta istanze tempi di caricamento sarà molto frequentemente influenzare il posizionamento in Google e potrebbe danneggiare il tuo punteggio di alta qualità se gli annunci e di marketing con AdWords. Bene Im aggiungendo questo feed al mio e-mail e può guardare fuori per molto di più dei vostri rispettivi contenuti interessanti. Assicurati di aggiornare di nuovo presto .. scorta Ilford il 21 aprile 2011 alle 17:13 ho proprio voluto ringraziarvi tanto, ancora una volta. Non so le cose che avrei potuto hanno attraversato senza il tipo di informazioni rivelate da voi nel corso di un tale preoccupazione. Interamente è stato il problema intimidatorio nella mia posizione, però. la visualizzazione di questa strategia abile avete affrontato il problema mi ha fatto saltare di gioia. Sono felice per il servizio e la fiducia di sapere che cosa un grande lavoro vi capita di essere impresa insegnare molte persone in tutto attraverso i vostri siti web. Probabilmente you8217ve mai avuto modo di conoscere tutti noi. Hey Volevo solo chiedere se avete mai alcun problema con gli hacker mio ultimo blog (wordpress) è stato violato e ho finito per perdere un paio di mesi di duro lavoro a causa di non eseguire il backup. Avete metodi per proteggere contro gli hacker ciao là e vi ringrazio per la vostra informazioni Ive certamente raccolto qualcosa di nuovo da qui. Ho fatto però competenza alcuni problemi tecnici che utilizzano questo sito, dal momento che ho sperimentato per ricaricare il sito molte volte precedente ho potuto ottenere che si carichi correttamente. Mi era stato chiedendo se il vostro web hosting è OK Non che io mi lamento, ma istanze caricamento lento volte spesso influenzare il posizionamento in Google e potrebbe danneggiare il tuo punteggio di qualità se la pubblicità e il marketing con AdWords. Beh, io sono l'aggiunta di questo feed alla mia email e potrebbe guardare fuori per molto di più dei vostri rispettivi contenuti affascinante. Assicurati di aggiornare di nuovo molto presto .. Sono continuamente imparando attraverso di voi, dal momento che mi sto migliorando personalmente. Certamente piace leggere tutto ciò che è creato sul web site. Keep le raccomandazioni provenienti. Mi piace molto 1513150014931501 150014991500 1492149014931500151314971501 15121510149715141497 150014921502150014971509 150014991501 15061500 1495148915121492 150214931502149514971514 150014991500 14921504149314901506 1500150215061512149914931514 14971495150514971501 149214911493151114931514 15061501 150215061512149914931514 1489150415111488149714931514 14921502150514971497150614931514 15001511148915001514 148814971513149315121497 15021513149915041514148814931514 1511150014971501 1493150214921497151214971501 149314921513150015021514 150215131499150415141488 148915001488 150514971512148914931500 149314921502151415041492 150214971493151415121514. Buon giorno, non posso credere che un certo numero di siti web che sono stati preso a da stumblupon. Mi è stato 26trying di passare un paio di sordo 60 minuti di distanza, quando StumbleUpon mi ha portato qui. Che straordinaria pagina di possedere Im così felici di aver scoperto che ho appena superato i precedenti 20 minuti che attraversa molti dei vostri articoli e recensioni, e hanno anche segnalibro alcuni di loro. Io ci torneremo di nuovo a imparare un pochino di più quando ho un tantino più tempo. Carmine aprile il 25 aprile 2011 alle 17:55 1513150014931501 15.121.489 15121510149715141497 150014921502150014971509 150.014.991.501 15.061.500 15.061.501 148.815.141.512 1502149714911506 14891514149514931501 149515001493150414931514 14891500149014971501, 148815001493150214971504149714931501 149315141512149715051497 14901500149715001492 1495151315021500149714971501. 1489148815141512 1502149714911506 148915001497149314931497 151415021493150414931514 149315021490149314931503 14911497151214931514 150014911493149015021488 149215061493151314931514 15131497150214931513 148915021493151015121497 1492148815001493150214971504149714931501 149215041500. sacco di gente pensa che gli esseri umani CONTRIBUISCONO al riscaldamento globale LORO DON8217t. Il riscaldamento globale è causato dalla natura, vulcani contibute significativamente più al riscaldamento globale di esseri umani e la decomposizione delle foglie contribuisce più di vulcani. Gli esseri umani inquinano solo l'atmosfera che significa che si tratta solo di impuro, ma non contribuiranno al riscaldamento globale. Il riscaldamento globale causerà un'era glaciale perché con il ghiaccio polare tappi si fondono e l'aumento del livello del mare che provoca raffreddamento globale che a sua volta provoca una glaciazione. questo può durare per circa. 2 secoli attraverso il quale nessuna tecnologia moderna sopravviverà, anche se la gente farà. Phil Aicklen il 28 aprile 2011 alle 06:12 Hey ho assolutamente godere il vostro editoriale ed è stato così favoloso così ho intenzione di segnalibro. Una cosa da dire la ricerca eccezionale che avete fatto è sicuramente notevole. Chi va quel qualcosa in più in questi giorni Bravo. Anche un altro consiglio per voi è che si definetlyget qualche traduttore per i vostri lettori globali si pratichi a causa di tutto il vostro duro lavoro su questo sito. Betty piace molto lavorare sulla ricerca ed è ovvio il motivo. Mio marito e io imparare tutto quanto riguarda il metodo vivace si esegue il rendering suggerimenti vantaggiosi e suggerimenti per mezzo di questo sito e così causa risposta da altri quelli su quel contenuto, mentre il nostro figlio è sempre stato diventare educati così tanto. Approfittate della parte restante del nuovo anno. Avete fatto un lavoro strepitoso. Ide sortie il 29 aprile 2011 alle 06:32 1513150014931501 15001499149315001501. 148915121510149315041497 1500151315141507 14881493151414991501 15.061.500 1495148915121492 150014971497151014931512 150214961489149514971501 1496149314891492 1493150014921512149914891514 150214961489149514971501 148914891506149715101493148914971501 150615141497151114971501. 1500150815041497 1497150214971501 149.915.021.492 15001489150514931507 14921489149714881493 15.001.497 14.881.514 14921502149614891495 151.315.001.497. Stavo solo cercavo queste informazioni per un po '. Dopo sei ore di googleing continuo, finalmente ho capito nel vostro sito web. Mi chiedo what8217s il problema Google8217s che non classificare questo tipo di siti web informativi più vicino alla cima. Normalmente i siti migliori sono pieni di spazzatura. Quello che non capito è in realtà come non si è in realtà molto più ben apprezzato quanto si possa essere ora. Sei molto intelligente. Lei già conosce quindi in modo significativo relative a questo argomento, prodotta me a mio parere credo che da tante diverse angolazioni. Le sue donne come gli uomini e le aren8217t affascinato meno che non sia qualcosa a che fare con la ragazza Gaga vostri animali personali grande. Per tutto il tempo prendersi cura di esso fino Mio figlio appena scomparso e lasciato alle spalle l'equilibrio di TFSA 1.200 dollari canadesi a TD Bank con il mio nome come il suo gt beneficinary Tuttavia, aveva anche una carta di credito saldo di 1,200- dollari canadesi Plus TD Bank. Il personale della banca mi ha detto che tutti i suoi risparmi in TFSA sarebbero scrivere off per il suo pagamento con carta di credito. Do anybody know that whether the bank can hold the deceased039s TFSA money to pay off the debt in his Credit Card payment under this situation If the deceased has some other debts in the other banks, will they draw the money out from TFSA to cover his credit card payment even the deceased already designated somebody as his beneficiay Alice on April 25, 2013 at 1:26 am It depends8230 if the TFSA was part of his estate, then yes, it would go towards settling any debts his estate left behind. I think the only way you would get the money is if he left it to you as part of a life insurance policy. Speak with an accountant to be sure. I039m not 100 certain. Horstradamus on May 1, 2013 at 12:12 am Great information here reference TFSA8217s. But I would recommend to anyone who has somewhat of a delicate question that they contact their Governmental Department for advice that they know will be absolutely explained correctly so that a complete understanding may be achieved. John Sullivan on February 27, 2016 at 3:20 pm I have the fullest amount in my TFSA account as of 2016. Currently, I purchases a US stock and sold it after 15 profit earned in 2 months. How complicated it is to calculate the tax for the profit earned. The tax people and the financial advisor did not seem to have the same answer. Can somebody help me please Tim Howan on September 11, 2016 at 5:51 pmIncome Tax Folio S3-F10-C1, Qualified Investments RRSPs, RESPs, RRIFs, RDSPs and TFSAs Series 3: Property, Investments and Savings Plans Folio 10: Registered Plans for Individuals Chapter 1: Qualified Investments160 RRSPs, RESPs, RRIFs, RDSPs and TFSA Registered retirement savings plans (RRSPs), registered education savings plans (RESPs), registered retirement income funds (RRIFs), registered disability savings plans (RDSPs), and tax-free savings accounts (TFSAs) are required to limit their investments to qualified investments . This Chapter discusses the most common types of property that constitute a qualified investment, as well as the tax consequences of acquiring, holding and disposing of a non-qualified investment. It also discusses the tax consequences of a registered plan carrying on a business or borrowing money. 160 This Chapter does not discuss the anti-avoidance rules for prohibited investments or advantages that apply to RRSPs, RRIFs and TFSAs. The prohibited investment rules are discussed in Income Tax Folio S3-F10-C2, Prohibited Investments - RRSPs, RRIFs and TFSAs and the advantage rules will be discussed in a separate Chapter to be released later. 160 The CRA issues income tax folios to provide technical interpretations and positions regarding certain provisions contained in income tax law. Due to their technical nature, folios are used primarily by tax specialists and other individuals who have an interest in tax matters. While the comments in a particular paragraph in a folio may relate to provisions of the law in force at the time they were made, such comments are not a substitute for the law. The reader should, therefore, consider such comments in light of the relevant provisions of the law in force for the particular tax year being considered. Discussion and interpretation Overview of qualified investments 1.1 This section is intended to give the reader an overview of the qualified investment rules for RRSPs, RESPs, RRIFs, RDSPs and TFSAs. It is not intended as a substitute for the more detailed and comprehensive discussion that follows it, which will be primarily of interest to financial institutions, brokerage firms, tax specialists and others who are involved in plan administration. 1.2 The qualified investment rules apply to registered plans that are set up as a trust. Trusteed plans that allow investors to choose a wide variety of investments are often referred to as a self-directed plan. Trusteed plans also include plans that restrict investments to mutual funds and other investment products issued by the firm that administers the plan. 1.3 Registered plans that take the form of a deposit or insurance contract, such as a registered guaranteed investment certificate (GIC) or registered annuity, are not subject to the qualified investment rules. The plan itself is the eligible investment. 1.4 The following are common types of qualified investments: money, GICs and other deposits most securities listed on a designated stock exchange, such as shares of corporations, warrants and options, and units of exchange-traded funds and real estate investment trusts mutual funds and segregated funds Canada Savings Bonds and provincial savings bonds debt obligations of a corporation listed on a designated stock exchange debt obligations that have an investment grade rating and insured mortgages or hypothecs. 1.5 While the Act and Regulations set out the types of investments that are qualified investments, many firms have internal policies that further limit the types of qualified investments that may be held by the registered plans they administer. The legislation does not prohibit them from having such policies, which reflect the business decisions of the firm. 1.6 Given the numerous and wide variety of investments that exist, the CRA does not maintain a master list of specific investments that are qualified investments, nor does it make determinations as to whether a specific investment qualifies except in the context of an advance income tax ruling or audit. 1.7 Registered plan trustees are responsible for monitoring investments to minimize the possibility of a plan holding a non-qualified investment. 1.8 If a registered plan acquires a non-qualified investment or an existing investment becomes non-qualified. significant adverse tax consequences apply. In the case of an RRSP, RRIF, TFSA or RDSP, the annuitant or holder of the plan is subject to a 50 tax that is refundable in certain circumstances and is required to file a special tax return and remit the tax. In addition, the plan is taxable on any income earned on non-qualified investments. In the case of an RESP, the plan is subject to a 1 monthly tax and its registration may be revoked. The trustee of the plan is required to file a tax return and remit the tax on behalf of the plan. References to various terms 1.9 The following terms are used throughout this Chapter: A trust governed by an RRSP, RESP, RRIF, RDSP or TFSA is referred to individually as an RRSP, RESP, RRIF, RDSP or TFSA, respectively, and collectively as a registered plan . A reference to the trustee of a registered plan means the issuer of a trust governed by an RRSP, RDSP or TFSA, the carrier of a trust governed by a RRIF or the trustee of a trust governed by an RESP. A bond, debenture, note or similar obligation is referred to as a debt obligation . A connected person for the purposes of interpretation of the regulations regarding qualified investments is defined in subsection 4901(2) of the Regulations as a person who is the annuitant under an RRSP or RRIF, the beneficiary or subscriber under an RESP, the beneficiary or holder under an RDSP or the holder of a TFSA. It also includes any other person who does not deal at arms length with that person. For a discussion on the criteria used to determine whether persons deal with each other at arms length, refer to Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arms Length . Types of qualified investments 1.10 The types of property that constitute a qualified investment for an RRSP, RESP, RRIF, RDSP and TFSA are described in the respective definitions of qualified investment in subsections 146(1). 146.1(1), 146.3(1), 205(1) and 207.01(1). Those definitions also include by reference certain property described in the definition of qualified investment in section 204. In addition, investments prescribed by section 4900 of the Regulations are qualified investments. It is possible for an investment to qualify under more than one provision. The list of qualified investments is generally the same for all five registered plans. Where there are differences, this has been noted in the description of the particular investment. The table in 1.100 lists the specific statutory or regulatory authority for each type of qualified investment described in the Chapter. 1.11 Generally, the conditions that must be met for an investment to be a qualified investment apply on an on-going basis. However, several provisions contain conditions that apply only at a point in time, typically on acquisition of the investment by the registered plan. Where this is the case, it has been noted in the section of the Chapter describing that investment. Money and deposits 1.12 Money is a qualified investment whether denominated in Canadian or foreign currency, provided its fair market value does not exceed its stated value as legal tender in the country of issuance. Rare coins and other forms of money held for collectible value are not a qualified investment. Digital currencies, such as Bitcoins, are not considered to be money issued by a government of a country and are not qualified investments. Foreign exchange contracts do not constitute money and are generally not qualified investments (see 1.46 ). 1.13 A deposit with a Canadian branch of a bank, a deposit with a Canadian trust company, or any other deposit within the meaning assigned by the Canada Deposit Insurance Corporation Act is a qualified investment. This accommodates guaranteed investment certificates, term deposits and other forms of deposits of money. Because the definition of deposit under that Act excludes foreign-denominated deposits and deposits with a maturity of longer than five years, such deposits will qualify only if the deposit is with a Canadian branch of a bank or a Canadian trust company. 1.14 A deposit with a credit union is a qualified investment. However, the deposit will not be a qualified investment for a registered plan in a calendar year if the credit union has at any time during the year granted or extended any benefit or privilege to a connected person under the plan as a result of the plan (or a registered investment in which it has invested) having invested in a share, obligation or deposit issued by the credit union. This restriction does not apply to RESPs. 1.15 With some transactions involving securities, a registered plan may be required to leave cash on deposit with a broker. While such a deposit is generally not a qualified investment, the CRA will not apply the adverse income tax consequences described in 1.69 - 1.80 if the deposit is left with the broker for no more than a few days. Listed securities 1.16 Except for certain derivatives, any security that is listed on a designated stock exchange (as described in 1.17) is a qualified investment. This accommodates a wide range of listed securities, including: shares of corporations put and call options warrants debt obligations units of exchange-traded funds units of real estate investment trusts units of royalty trusts and units of limited partnerships. Futures contracts and other derivative instruments in respect of which the holders risk of loss may exceed the holders cost are not qualified investments. The fact that a broker may be willing to put in place an arrangement to close out a futures contract so as to minimize the possibility of the registered plan going into a loss position does not overcome this restriction. Designated stock exchanges 1.17 A designated stock exchange is defined as a stock exchange, or a part of a stock exchange, for which a designation by the Minister of Finance under section 262 is in effect. The list of designated stock exchanges is published on the Department of Finance Canada website. 1.18 Over-the-counter (OTC) quotation systems, such as the OTC Bulletin Board and OTC Link ATS (formerly Pink Sheets) in the United States, are not designated stock exchanges. As a result, securities that trade on OTC markets are generally not qualified investments. However, OTC securities can still qualify if they are cross-listed on a designated stock exchange or if the securities meet other qualification conditions such as those that apply to certain Canadian small businesses (see 1.55 - 1.66). 1.19 Many stock exchanges in the European Union (EU) operate two market segments, an official EU-regulated market and an unofficial market that is regulated by the exchange itself. The latter markets include the Alternative Investment Market (AIM) of the London Stock Exchange, Alternext operated by the various stock exchanges that comprise Euronext and the Open Market of the Frankfurt Stock Exchange. Only the official, EU-regulated markets qualify as a designated stock exchange provided the stock exchange is included on the Department of Finance list. The unofficial, exchange-regulated markets do not qualify as they are not recognized as an official market under European Union law, nor are they subject to stringent transparency requirements and investor protection regulations. It follows then that a listing on an unofficial, exchange-regulated market is not a basis for a registered plan trustee to confirm qualified investment status of a particular security. Conditional listing 1.20 In a new public issue of securities, the listing of the securities may be delayed for a short period of time pending fulfillment of certain conditions. A security that is approved for listing or that has a conditional approval for listing is not at that time considered to be listed on a designated stock exchange. In order for a security to qualify, the listing must be full and unconditional. Suspended from trading or de-listed 1.21 Shares of a corporation resident in Canada that were listed on a designated stock exchange in Canada but that have been suspended from trading or delisted will generally retain their qualified investment status on the basis that such a corporation continues to be a public corporation. As discussed in 1.23, shares of a public corporation are qualified investments. Qualified investment status could be lost, however, if the corporation elected (or was designated) not to be a public corporation. In most other situations, the suspension or delisting of a security will result in loss of qualified investment status, unless the security also qualifies under another provision. American Depositary Receipts 1.22 An American Depositary Receipt is a qualified investment, provided that the property represented by the receipt (generally a share of a company listed on a stock exchange outside the United States) is listed on a designated stock exchange. Many American Depositary Receipts are themselves listed on a designated stock exchange and thus also qualify on the basis of being a listed security, as discussed in 1.16 . Public corporations 1.23 A share or debt obligation of a public corporation is a qualified investment, except as discussed in 1.29. For comments on the meaning of public corporation . see Interpretation Bulletin IT-391R, Status of Corporations . 1.24 The post-amble of the public corporation definition in subsection 89(1) allows a new corporation to elect to be deemed to have been a public corporation since its date of incorporation. To qualify, the corporation must become a public corporation on or before the time it must file the T2 return for its first tax year and it must file the election with that return. The retroactive effect of this election also applies for the purposes of the qualified investment rules. By filing a valid election, any otherwise non-qualifying shares or debt obligations of the new corporation acquired by a registered plan between the date of incorporation and the time at which the corporation becomes a public corporation will be a qualified investment from the time they are so acquired. Accordingly, any non-qualified investment taxes that would otherwise apply would be rendered inapplicable. Investment funds 1.25 A unit of a mutual fund trust (as defined in subsection 132(6) ) is a qualified investment. 1.26 A share of a mutual fund corporation is generally a qualified investment. Mutual fund corporation is defined in subsection 131(8) as a corporation that either satisfies the conditions in paragraphs 131(8)(a) to (c) or qualifies as a prescribed labour-sponsored venture capital corporation. Any corporation that is a mutual fund corporation under the first approach is by definition a public corporation and therefore its shares are qualified investments (as discussed in 1.23 ). A prescribed labour-sponsored venture capital corporation is generally not by definition a public corporation and is therefore precluded from qualifying on this basis. However, its shares may still qualify for an RESP, RRSP, RRIF or TFSA where the conditions discussed in 1.63 are met. 1.27 A share or unit of a corporation or trust that is a registered investment (RI) (as defined in subsection 204.4(1) ) is a qualified investment. If a registered plan acquires such shares or units before the corporation or trust becomes an RI, the shares or units can still qualify retroactive to the time of acquisition if the corporation or trust is registered as an RI before the end of the calendar year in which the shares or units are acquired. Note that the registration of an RI cannot have retroactive effect any earlier than the beginning of the calendar year in which application for registration is made. Also, if a corporation or trust loses its status as an RI, its shares or units will maintain their qualified investment status until the end of the calendar year immediately following the year in which the deregistration occurred. 1.28 Certain types of RIs (those described in paragraph 204.4(2)(b). (d) or (f)) are required to limit their investments to qualified investments. Where such an RI acquires a non-qualified investment, the RI will be subject to a special tax under subsection 204.6(1). This will not affect the status of the RI itself as a qualified investment for registered plans. 1.29 A share of a mortgage investment corporation (MIC) is a qualified investment for a particular registered plan provided the MIC does not hold any debt of a connected person under the plan. The term MIC is defined in subsection 130.1(6). Although a MIC is deemed to be a public corporation . shares and debt obligations of a MIC are expressly excluded from qualifying on this basis. Debt obligations 1.30 Some of the more common debt obligations that are qualified investments are: a debt obligation issued or guaranteed by the Government of Canada (for example, Canada Savings Bonds) a debt obligation issued by a province or municipality in Canada or a federal or provincial Crown corporation a debt obligation issued by a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada a debt obligation issued by a corporation the shares of which are listed on a designated stock exchange outside Canada a debt obligation that is listed on a designated stock exchange (see 1.16 ) a bankers acceptance of a Canadian corporation, provided the corporation is not a connected person under the registered plan a debt obligation issued by an authorized foreign bank and payable at a Canadian branch of the bank a debt obligation that has, or had at the time of purchase, an investment grade rating (generally BBB or higher) with a prescribed credit rating agency (see 1.31) and was issued as part of a single issue, or under a continuous issuance program, of debt of at least 25 million a mortgage-backed security (generally an undivided interest or undivided right in a pool of mortgages or hypothecary claims) if it: has an investment grade rating with a prescribed credit rating agency at the time it is acquired by the registered plan is issued as part of a minimum 25 million issuance and derives all or substantially all of its fair market value from debt obligations that are secured by a mortgage or hypothec on real or immovable property situated in Canada and certain other mortgages or hypothecary claims discussed in 1.32 - 1.36. Prescribed credit rating agencies 1.31 For the purposes of the types of debt obligations described in 1.30(h) and (i), the following are prescribed credit rating agencies: A. M. Best Company, Inc. DBRS Limited Fitch, Inc. Moodys Investors Service, Inc. and Standard amp Poors Financial Services LLC. In some cases, a debt rating may be provided by a subsidiary or affiliate of one of these listed rating agencies. Where the facts, corporate structure and legal relationship make it clear that a listed rating agency recognizes and would stand by the rating given by its subsidiary or affiliate, then the condition that the rating be with a prescribed credit rating agency would be satisfied. Arms length and non-arms length mortgages and hypothecs 1.32 In addition to mortgage-backed securities (see 1.30(i)), there are two other types of mortgage or hypothecary investments that are qualified investments. These are commonly referred to in the investment industry as arms length mortgages (discussed in 1.33 - 1.35) and non-arms length mortgages (discussed in 1.36 ). There is no income tax requirement that such mortgages be a first mortgage or a residential mortgage. 1.33 A debt obligation that is fully secured by a mortgage or hypothec on real or immovable property situated in Canada is a qualified investment for a registered plan, provided the borrower is not a connected person under the registered plan. In general, a debt obligation would be considered to be fully secured if the value of the real or immovable property pledged by the borrower to the lender in the event of default is sufficient to cover the full amount of the principal and interest outstanding on the loan. For this purpose, any decline in the fair market value of the property after the debt obligation was issued can be ignored. 1.34 Real or immovable property is not a qualified investment for a registered plan. However, a registered plan might acquire real or immovable property in order to protect a mortgage or hypothecary investment that is in default. In this case, the CRA will not apply any adverse tax consequences (as described in 1.69 - 1.80) provided the property is offered for sale under reasonable conditions and sold within one year. A longer time frame might be possible in unusual circumstances. Any legal fees incurred for foreclosure, power of sale or other proceedings necessary to protect the investment are expenses of, and must be paid by, the registered plan. If the expenses are paid by the annuitant, holder or subscriber of the plan or by someone else, they would be treated as a contribution or gift to the plan and could give rise to adverse tax consequences. All the funds or property recovered from these proceedings should be deposited into the registered plan. Any amount not deposited into the registered plan would be considered a withdrawal from the plan and taxed accordingly. 1.35 Where a mortgage or hypothec is in default and the registered plan trustee fails to take appropriate proceedings to protect its investment (or requires authorization from the annuitant, holder or subscriber of the plan before taking such action), this is an indicator that the borrower may not be dealing at arms length with the annuitant, holder or subscriber. If this is the case, because the borrower would be a connected person. the investment would no longer be, or possibly may never have been, a qualified investment. This determination would require a review of the specific facts. 1.36 A debt obligation secured by a mortgage or hypothec on real or immovable property situated in Canada is a qualified investment if it is administered by an approved lender under the National Housing Act and insured by the Canada Mortgage and Housing Corporation (CMHC) or by an approved private insurer of mortgages. The list of approved lenders is available on the CMHC website. The interest rate and other terms must reflect normal commercial practice and the mortgage or hypothec must be administered by the approved lender in the same manner as a mortgage or hypothec on property owned by a stranger. Failure to do so may result in adverse tax consequences. Strip bonds 1.37 A strip bond is created when a regular bond is separated into its interest and principal payment components for resale as individual investments. Provided the original bond is a qualified investment, both the interest-paying portion and the principal portion of the bond (often referred to as the coupon and the residual, respectively) will also be qualified investments. An undivided interest in a right to receive such coupon or residual payments will also qualify. Warrants and options 1.38 In addition to listed warrants and options (see 1.16 ), certain unlisted rights are eligible for investment by registered plans. A warrant, option or similar right is a qualified investment for a registered plan if it gives the holder the immediate or future right to acquire property that is a qualified investment for the plan. The underlying property must be: a share, unit or debt of the issuer of the right (or of a person or partnership that does not deal at arms length with the issuer) or a warrant issued by the issuer (or by a non-arms length party) that gives the holder the right to acquire such a share, unit or debt. In addition, the issuer must not be a connected person under the registered plan. The right may also provide for it to be cash settled in lieu of actual delivery of the property. 1.39 The qualification conditions for the underlying property might include a condition relating to the annuitant, holder or other connected person under the registered plan (such as a maximum ownership threshold). In this case, it is necessary to assume that the registered plan has exercised the right and acquired the underlying property. In 2012, Kenjii bought 5 of the common shares of ABC Company and acquired another 4 in his RRSP. ABC Company is a specified small business corporation. The shares are a qualified investment for the RRSP solely on the basis of subsection 4900(14) of the Regulations. Kenjii deals at arms length with ABC Company. Recently Kenjiis RRSP bought warrants that give the RRSP the right to acquire an additional 3 of ABCs common shares. The warrants are not listed on a designated stock exchange. For the warrants to be a qualified investment for Kenjiis RRSP, the underlying shares must satisfy the qualified investment test. As described in 1.56 - 1.60, one of the conditions for a share of a specified small business corporation to be a qualified investment is that the share not be a prohibited investment for the plan when acquired. In this situation, it is assumed that the RRSP has exercised the warrants. This means Kenjii would hold 12 of ABCs common shares and would have a significant interest in ABC Company. Accordingly, the underlying shares would be a prohibited investment for the RRSP. As a result, the warrants are not a qualified investment. The fact that the shares currently held by the RRSP are qualified investments is not relevant to this determination. Option writing 1.40 When writing put and call options (sometimes referred to as selling), no property is actually acquired by the option writer at the time the option is sold besides the option premium. The option writer merely accepts the obligation to sell or buy the underlying property at the agreed upon price should the option holder exercise their right. Therefore, option writing, in and of itself, is generally not subject to the qualified investment rules. However, several other income tax rules may restrict the ability of a registered plan to engage in option writing strategies (discussed in 1.41 - 1.44). 1.41 As discussed in 1.86. an RRSP, RRIF, RDSP or TFSA is generally taxable on its business income. If an RESP is found to carry on a business, the registration of the plan may be revoked. A registered plan that engages in option writing strategies that are speculative in nature may be considered to be carrying on a business. It would therefore be taxable on any premiums or other income earned in connection with such activities (or be revocable in the case of an RESP). Whether a taxpayer carries on a business can only be determined following a review of all of the facts relating to the taxpayers particular circumstances. The CRAs view is that the writing of a covered call option, whereby a registered plan sells a call option in respect of an underlying property which it already owns, does not result, in and of itself, in the registered plan being considered to be carrying on a business. In contrast, the writing of an uncovered call option, or the writing of a put option, whether alone or in combination with other positions, may result in the registered plan being considered to be carrying on a business. 1.42 A registered plan is generally prohibited from borrowing money. Depending on the circumstances, the writing of an option may result in the writer having to borrow funds to cover their obligation under the option agreement. If a registered plan were to borrow money, the adverse tax consequences discussed in 1.83 would apply. 1.43 It is common practice for brokerage firms to impose margin requirements in connection with various options strategies. For example, an option writer may be required to deposit cash with their brokerage firm to cover their obligation under the option agreement. As noted in 1.15. if the deposit is left with the broker for longer than a few days, the deposit would not be a qualified investment. The qualified investment rules may also apply where the option premium is paid in non-cash form or in the case of a non-cash settled option. Any property acquired by a registered plan must be a qualified investment in order to avoid adverse tax consequences. 1.44 The advantage tax in section 207.05 could apply if an RRSP, RRIF or TFSA trust were to engage in certain option transactions. For example, this would be the case where: the counterparty to the option contract does not deal at arms length with the annuitant or holder, or the contract does not reflect commercial terms, which serves to artificially shift value into or out of the registered plan. Foreign exchange trading 1.45 Foreign exchange trading, also referred to as Forex trading, encompasses a number of financial instruments or transactions. These can range from simply holding foreign currency to entering into various foreign exchange contracts such as spots, futures, forwards, swaps and options. The ability for registered plans to engage in foreign exchange trading is severely restricted, as discussed in 1.46. 1.46 Foreign currency is generally a qualified investment, as discussed in 1.12. Foreign exchange contracts that are listed on a designated stock exchange are also qualified investments if the holders risk of loss does not exceed the holders cost (see 1.16 ). This would include, for example, foreign currency options. Most other listed foreign exchange contracts, such as foreign currency futures contracts, are not qualified investments because the risk of loss exceeds the cost of the contract. Foreign exchange contracts that trade on the over-the-counter (OTC) markets, such as swap or forward contracts, are not qualified investments. These contracts do not constitute money, nor is the OTC market a designated stock exchange. As with option writing, a registered plan that engages in foreign exchange trading may be considered to be carrying on a business and be subject to adverse tax consequences. Such a determination is a question of fact. Similarly, if a registered plan were to borrow money to cover its obligation under a foreign exchange contract, adverse tax consequences would apply. See 1.83 and 1.86 for more details. Annuity contracts 1.47 Several types of annuity contracts are qualified investments, although some are eligible only for certain plans. A qualification condition common to each annuity contract is that it be issued by a person licensed under Canadian or provincial law to carry on an annuities business. the registered plan is the only person entitled to any annuity payments under the contract (disregarding any subsequent transfer of the contract by the registered plan), and the holder of the contract may surrender the contract at any time for an amount that is approximately equal to its fair market value (ignoring reasonable sales and administration fees). This includes, for example, a segregated fund annuity. 1.49 An annuity payable to the annuitant at the maturity of an RRSP is a qualified investment for the RRSP if the annuity is described in the definition of retirement income in subsection 146(1) . 1.50 An annuity is a qualified investment for an RRSP, RRIF or RDSP if the annuity is similar to an annuity described in 1.49, except that the annuity payments can be made to the RRSP, RRIF or RDSP before the maturity date of the plan. Also, the conditions applicable to RDSP annuities differ slightly to reflect certain attributes particular to RDSPs. Gold and silver 1.51 Subject to certain conditions, investments in gold and silver bullion coins, bars and certificates are qualified investments. The CRA would anticipate that the registered plan trustee would exercise due diligence in using a custodial trustee for such bullion. 1.52 A legal tender gold or silver bullion coin produced by the Royal Canadian Mint with a minimum purity of 99.5 for gold and 99.9 for silver is a qualified investment. To ensure that the coin is not held for its collectible value, the fair market value of the coin may not exceed 110 of the fair market value of its gold or silver content. In addition, the coin must be purchased directly from the Mint or from a Canadian-resident corporation that is a bank, trust company, credit union, insurance company or registered securities dealer whose business activities are regulated by the Superintendent of Financial Institutions or a similar provincial authority (referred to in 1.53 and 1.54 as a specified corporation ). 1.53 A gold or silver bullion bar, ingot or wafer produced by a metal refiner accredited by the London Bullion Market Association and with the same purity standards that apply for coins (described in 1.52) is a qualified investment if it bears a hallmark identifying the refiner, purity and weight. In addition, the bullion must be purchased directly from the refiner or from a specified corporation. 1.54 A gold or silver certificate issued by the Royal Canadian Mint or a specified corporation is a qualified investment if the bullion represented by the certificate satisfies the conditions described in 1.52 or 1.53. In addition, the certificate must be purchased directly from the issuer or from a specified corporation. Small business investments 1.55 Certain small business investments are qualified investments for RRSPs, RRIFs, RESPs and TFSAs, as discussed in 1.56 - 1.66. None of these investments are eligible for RDSPs and only those described in 1.56 - 1.59, 1.63 and 1.64 are eligible for TFSAs (unless they qualify on another basis). Small business corporations 1.56 A share of a specified small business corporation is a qualified investment for an RRSP, RRIF or TFSA if the share is not a prohibited investment for the plan, as discussed in 1.57 - 1.60. For RRSPs and RRIFs, these rules apply only to investments acquired after March 22, 2011. Investments acquired on or before that date are subject to the rules discussed in 1.61 and 1.62 for RESPs. 1.57 A specified small business corporation is defined in subsection 4901(2) of the Regulations by reference to the definition of small business corporation in subsection 248(1) but with certain modifications. In general, a specified small business corporation is a Canadian corporation (as defined in subsection 89(1) but not including a corporation controlled, directly or indirectly in any manner whatever, by one or more non-resident persons) all or substantially all of the fair market value of the assets of which is attributable to assets that are: used principally in an active business carried on primarily in Canada by the corporation or by a corporation related to it shares or debt of connected small business corporations or a combination of the above two. To qualify as a specified small business corporation at a particular time, a corporation must satisfy these conditions either at that time or at the end of the corporations preceding tax year. Active business is defined in subsection 248(1) as any business that is carried on by a taxpayer resident in Canada other than a specified investment business or a personal services business. For more information, see Interpretation Bulletin IT-73R6, The Small Business Deduction . 1.58 A cooperative corporation is expressly excluded from being a specified small business corporation. However, shares of certain cooperative corporations may be qualified investments as discussed in 1.64 . 1.59 The term prohibited investment is defined in subsection 207.01(1) and is generally an investment of an RRSP, RRIF or TFSA to which the annuitant or holder of the plan is closely connected. More specifically, a share of a corporation is a prohibited investment for an RRSP, RRIF or TFSA if the annuitant or holder of the plan: is a specified shareholder of the corporation (generally a taxpayer who owns directly or indirectly 10 or more of any class of shares of the corporation, taking into account non-arms length and certain other holdings) or does not deal at arms length with the corporation. 1.60 The conditions that the corporation be a specified small business corporation. and that the shares not be a prohibited investment. need only be satisfied at the time the RRSP, RRIF or TFSA acquires the shares. This means that, should these conditions later not be met, the shares will not cease to be a qualified investment. It also means that the trustee of the RRSP, RRIF or TFSA is required to confirm qualified investment status for such shares only once at the time of acquisition. However, the annuitant or holder would nonetheless be subject to adverse tax consequences in the event these conditions are no longer met because the shares would be a prohibited investment. See Income Tax Folio S3-F10-C2 for more detail. 1.61 A share of a specified small business corporation may also be a qualified investment for an RESP, subject to rules that are nearly identical to those discussed in 1.56 - 1.60. The difference is that the prohibited investment test is replaced by a requirement that neither the beneficiary nor the subscriber of the RESP be a connected shareholder of the specified small business corporation immediately after the shares are acquired by the RESP. For this purpose, a connected shareholder of a corporation is generally a person who owns, directly or indirectly, at that time, 10 or more of the shares of any class of shares of the corporation or of any other corporation related to the corporation. The term is defined in subsection 4901(2) of the Regulations and is subject to various rules in the definition itself and in subsections 4901(2.1) and (2.2) of the Regulations that either serve to narrow or expand the definitions scope beyond the general description provided above. 1.62 RESP investments in specified small business corporations are also subject to subsection 4900(13) of the Regulations. This anti-avoidance rule addresses schemes that are designed to artificially divert otherwise taxable income into the shelter of the RESP or to circumvent the RESP contribution limit. It provides that a share of a specified small business corporation will cease to be a qualified investment for an RESP if the return from that investment can reasonably be considered to be: payment for services rendered by an individual to the share issuer or to a person related to the issuer or payment for goods or services provided to an individual by the share issuer or by a person related to the issuer. Although investments by RRSPs, RRIFs and TFSAs in specified small business corporations are not subject to subsection 4900(13). such schemes would generally give rise to advantage tax under section 207.05 if they were to occur in the context of these plans. Venture capital corporations 1.63 A share of a venture capital corporation described in any of sections 6700. 6700.1 or 6700.2 of the Regulations is a qualified investment for an RRSP, RRIF, TFSA or RESP. The same conditions applicable to specified small business corporations discussed in 1.56 and 1.60 - 1.62 apply to these venture capital investments. In other words, for RRSPs, RRIFs and TFSAs, the shares cannot be a prohibited investment. For RESPs, the beneficiary and subscriber cannot be a connected shareholder and the anti-avoidance rule in subsection 4900(13) applies. Cooperative corporations 1.64 A qualifying share of a specified cooperative corporation is a qualified investment for an RRSP, RRIF, TFSA or RESP. The terms qualifying share and specified cooperative corporation are defined in subsection 4901(2) of the Regulations. In addition, the same conditions applicable to specified small business corporations discussed in 1.56 and 1.60 - 1.62 apply to these co-op investments. In other words, for RRSPs, RRIFs and TFSAs, the shares cannot be a prohibited investment. For RESPs, the beneficiary and subscriber cannot be a connected shareholder and the anti-avoidance rule in subsection 4900(13) applies. Limited partnerships and trusts 1.65 Subject to subsections 4900(8) and (9) of the Regulations, a limited partnership interest in a small business investment limited partnership and an interest in a small business investment trust are qualified investments for RRSPs, RRIFs and RESPs. These terms are defined in subsections 5102(1) and 5103(1) of the Regulations respectively. An interest in a general partnership is not a qualified investment for any registered plan. Eligible corporations 1.66 A share of an eligible corporation (as defined in subsection 5100(1) of the Regulations) is a qualified investment for an RRSP, RRIF or RESP, if certain conditions are met. The conditions are comparable to those described in 1.56 - 1.62 for specified small business corporations, except that they must be satisfied not only at the time of acquisition but throughout the entire period during which the shares are held by the RRSP, RRIF or RESP. Because the requirements for eligible corporations are viewed as being more onerous than those for specified small business corporations, the latter provisions are normally looked at first in order to obtain qualified investment status for small business shares. Instalment receipts 1.67 An instalment receipt reflects a partial payment on property and gives the owner an interest (or for civil law, a right) in that property. If the receipt reflects a partial payment on, for example, a share listed on a designated stock exchange, the interest or right in that share will constitute a qualified investment for the registered plan. For example, a corporation may have an arrangement to sell shares on an instalment basis, where the shares are sold at a predetermined price with a portion of the sale price payable at the time of sale and the balance to be paid at some future date. The purchase and ownership of the shares are evidenced by the instalment receipt issued to the purchaser at the time of the initial payment. Escrow agreement 1.68 The fact that a security may be subject to an escrow agreement will not in and of itself cause it to be a non-qualified investment for a registered plan, provided that: the security has been issued to and not simply allotted to the registered plan the holder of the security has all the rights of ownership that every other holder has in relation to the issuer and securities that are not subject to an escrow agreement, but which are identical to the escrowed security, are a qualified investment. Tax consequences non-qualified investments 1.69 Adverse tax consequences apply when an RRSP, RRIF, TFSA, RDSP or RESP holds a non-qualified investment. Specifically: the annuitant or holder of an RRSP, RRIF, TFSA or RDSP is subject to a 50 tax that is refundable in certain circumstances an RRSP, RRIF, TFSA or RDSP is taxable on any income earned on non-qualified investments an RESP is subject to a 1 monthly tax and the registration of an RESP may be revoked. These consequences are discussed in more detail in 1.72 - 1.80. 1.70 In addition, the annuitant or holder of an RRSP, RRIF or TFSA may be subject to the 100 advantage tax on specified non-qualified investment income (generally subsequent generation income earned on income previously taxed in the plan). The advantage tax rules will be discussed in a future Chapter. 1.71 If an investment is both a non-qualified investment and a prohibited investment. subsection 207.04(3) deems the investment to be a prohibited investment only. See Income Tax Folio S3-F10-C2 for more detail. RRSPs, RRIFs, TFSAs and RDSPs 1.72 If an RRSP, RRIF, TFSA or RDSP acquires a non-qualified investment or an existing investment becomes non-qualified. the annuitant or holder of the plan is subject to a tax equal to 50 of the fair market value of the property at the time it is acquired or becomes non-qualified. The tax is imposed under section 207.04 for RRSPs, RRIFs and TFSAs and under section 206.1 for RDSPs. If the 50 tax is owing for any calendar year: the annuitant of an RRSP or RRIF must file Form RC339, Individual Return for Certain Taxes for RRSPs or RRIFs with a payment for any balance due no later than June 30th of the following year the holder of a TFSA must file Form RC243, Tax-Free Savings Account (TFSA) Return with a payment for any balance due no later than June 30th of the following year and the holder of an RDSP must file Form RC4532, Individual Tax Return for Registered Disability Savings Plan (RDSP) with a payment for any balance due no later than 90 days following the end of the year. In the case of RRSPs and RRIFs, the 50 tax applies to investments acquired after March 22, 2011. The tax also applies to investments acquired before March 23, 2011 that first became non-qualified after March 22, 2011. An investment that was non-qualified before March 23, 2011 will continue to be subject to the former rules in sections 146. 146.3 and 207.1 that provided for either an income inclusion with an offsetting deduction or a 1 monthly tax. 1.73 The 50 tax on non-qualified investments is refundable in certain circumstances. To qualify for the refund, the investment must be disposed of before the end of the calendar year after the year in which the tax arose (or such later time as is permitted by the Minister of National Revenue). However, no refund is available if it is reasonable to consider that the annuitant or holder knew or ought to have known that the investment was or would become non-qualified. In the case of an RDSP, the refund is limited to the proceeds of disposition of the property if the proceeds are less than the amount of the tax imposed. The forms referred to in 1.72 explain how to claim the refund. 1.74 If a non-qualified investment becomes qualified while being held by an RRSP, RRIF or TFSA, subsection 207.01(6) deems the investment to have been disposed of and reacquired by the plan. This might happen when a delisted security is relisted. Subsection 206.1(6) provides a similar rule for RDSPs. This ensures that a refund is available in this situation, provided the conditions described in 1.73 are met. 1.75 Section 206.4 and subsection 207.06(2) give the Minister authority to cancel or waive all or part of the 50 tax on non-qualified investments in appropriate circumstances, taking into account such factors as reasonable error. The forms referred to in 1.72 explain how to apply for this relief. Trust taxable on non-qualified investment income 1.76 A trust governed by an RRSP, TFSA, RRIF or RDSP is taxable under Part I on any income it earns in a tax year from non-qualified investments in accordance with subsection 146(10.1). 146.2(6) or 146.3(9) or paragraph 146.4(5)(b). rispettivamente. For this purpose, income tax is payable on the trusts adjusted taxable income which is calculated using only the income or loss from non-qualified investments and the full capital gain or capital loss from the disposition of non-qualified investments. The adjusted taxable income also includes capital dividends described in section 83 . 1.77 Subsection 207.01(6) provides a special rule that applies when an investment becomes or ceases to be a non-qualified investment while being held by an RRSP, RRIF or TFSA. Paragraph 206.1(2)(b) provides a similar rule for RDSPs. The rules deem the investment to have been: disposed of immediately before that time for proceeds of disposition equal to its fair market value, and re-acquired for the same amount at the same time. This ensures that only the portion of the capital gain or capital loss that accrues during the period in which the investment was non-qualified is taken into account in determining the trusts adjusted taxable income. Marcs RRSP buys 4,000 worth of shares of Red White and Blue, a company whose shares are listed on a designated stock exchange in the United States. The shares are later delisted and become a non-qualified investment. The shares are only worth 500 when they are delisted. Subsection 207.01(6) deems the RRSP to dispose of the shares for 500 and to re-acquire them at this same 500 cost. Several months later the RRSP sells the shares for 2,500, resulting in an overall loss in value on the shares of 1,500 (4,000 - 2,500). However, the RRSP trustee would calculate the RRSPs Part I tax payable under subsection 146(10.1) based on the capital gain of 2,000 (2,500 - 500) that accrued during the period the shares were non-qualified . 1.78 The trustee must file a T3RET, T3 Trust Income Tax and Information Return for the trust with a payment for any balance due no later than 90 days following the end of the calendar year. 1 monthly tax 1.79 A trust governed by an RESP is subject to a tax under subsection 207.1(3) in respect of each month in a calendar year that it holds a non-qualified investment. The tax is equal to 1 of the fair market value at the time of acquisition of all property that the trust holds at the end of the month that is a non-qualified investment. The RESP trustee must file Form T3GR, Group Income Tax and Information Return for RRSP, RRIF, RESP, or RDSP Trusts for the trust with a payment for any balance due no later than 90 days after the end of the year. RESP is revocable 1.80 If an RESP acquires a non-qualified investment, or an existing investment becomes non-qualified and is not disposed of within 60 days. subsection 146.1(2.1) provides that the RESP is revocable. As a result, the Minister may revoke the plans registration under the Act pursuant to subsections 146.1(12.1) to (13). In such a case, the trust will be subject to tax under Part I on its taxable income for the entire calendar year that includes the date of revocation (not just on its taxable income earned after the date of revocation) because of subsection 146.1(11). The 1 monthly tax would not apply. Removal of non-qualified investment 1.81 The advantage tax rules effectively prohibit most transfers of property between an RRSP, RRIF or TFSA and its annuitant or holder (or a person with whom they do not deal at arms length). These transfers, which are referred to as swap transactions . are treated as an advantage and give rise to advantage tax under section 207.05. There are, however, two exceptions from these rules that facilitate the removal of a non-qualified investment recognizing that in many cases it may not be possible or desirable to sell the investment to an arms length party. 1.82 The swap transaction rules permit a non-qualified investment to be sold to the plans annuitant or holder (or a person with whom they do not deal at arms length), provided that the annuitant or holder is entitled to a refund of the 50 non-qualified investment tax in respect of the investment (see 1.73 ). The removal can also be accomplished by making an in-kind distribution of the non-qualified investment to the annuitant or holder. The distribution is treated as a regular withdrawal and therefore, in the case of an RRSP or RRIF, is included in the income of the annuitant. To avoid imposition of advantage tax, these transactions must occur at fair market value. Although the prohibition on swap transactions does not apply to RDSPs or RESPs, these transactions must nonetheless occur at fair market value to avoid adverse tax consequences. Tax consequences borrowing 1.83 Adverse tax consequences apply to deter registered plans from borrowing money. If an RRSP, RRIF or RDSP has borrowed money in a year (or in a previous year and has not repaid it before the beginning of the year), it is required to pay Part I tax on its taxable income for the year in accordance with paragraph 146(4)(a). subsection 146.3(3) or paragraph 146.4(5)(a). rispettivamente. In this case, the RRSP, RRIF or RDSP must file a T3 return for the year, as discussed in 1.78. If an RESP borrows money, paragraph 146.1(2.1)(d) provides that the RESP is revocable, subject to certain conditions that accommodate short-term borrowing. If a TFSA borrows money or any other property contrary to paragraph 146.2(2)(f). paragraph 146.2(5)(c) provides that the arrangement automatically ceases to be a TFSA effective at the time the borrowing occurs. As a result, the arrangement will lose its tax-exempt status from that time forward. 1.84 The CRA will not apply the adverse income tax consequences described in 1.83 to an overdraft in a registered plan if it: is temporary in nature and covered without undue delay arises as a result of (i) a mismatch of cash flow due to differences in standard settlement cycles for securities, (ii) a reasonable error, or (iii) an unintended infrequent event and does not have the character of leveraged investing. This administrative position is intended to accommodate certain overdrafts of very short duration that are quickly or naturally reversed or that are infrequent and inadvertent. This position does not apply to borrowing that arises in connection with a cashless exercise of warrants or a margin account. 1.85 The borrowing restrictions discussed in 1.83 do not apply where a registered plan acquires a qualified investment that is payable on an instalment basis (see 1.67 ). This is because an obligation to pay instalments does not constitute borrowed money as there is no relationship of lender and borrower between the parties. Tax consequences carrying on a business 1.86 Adverse tax consequences also apply to deter registered plans from carrying on a business in certain situations. An RRSP, TFSA, RRIF or RDSP is generally taxable under Part I on any income it earns in a year from carrying on a business in accordance with paragraph 146(4)(b). subsections 146.2(6) or 146.3(3) or paragraph 146.4(5)(b). rispettivamente. The RRSP, TFSA, RRIF or RSDP must file a T3 return for the year, as discussed in 1.78. An RESP is revocable pursuant to paragraph 146.1(2.1)(c) if it begins carrying on a business. 1.87 The determination of whether a particular taxpayer carries on a business is a question of fact that can only be determined following a review of the taxpayers particular circumstances. Interpretation Bulletin IT-479R, Transactions in Securities. sets out factors developed by the courts that are relevant in determining whether transactions in securities constitute carrying on a business. While there is nothing unique in applying these general principles to securities trading that occurs within a registered plan, several exceptions apply so that certain business activities will not give rise to adverse tax consequences. 1.88 Section 253.1 provides, in part, that an RESP, RDSP or TFSA will not, solely because it acquires and holds an interest in a limited partnership as a limited partner, be considered to carry on the business carried on by the partnership. Consequently, the provisions referred to in 1.86 will generally not apply where an RESP, RDSP or TFSA invests in a limited partnership. 1.89 In the case of an RRSP or RRIF, the rules in paragraphs 146(4)(b) and 146.3(3)(e) for calculating the amount of business income that is taxable to the RRSP or RRIF specifically exclude any business income from, or from the disposition of, qualified investments. This exclusion serves a similar purpose to the rule in section 253.1 in that it ensures that RRSPs and RRIFs are not subject to adverse tax consequences where they make eligible investments in limited partnerships. However, the exclusion is broader in that it applies not just to limited partnership investments, but to any investment of the RRSP or RRIF provided it is a qualified investment. This means, for example, that if an RRSP or RRIF were to engage in the business of day trading of various securities, it would not be taxable on the income derived from that business provided that the trading activities were limited to the buying and selling of qualified investments. 1.90 As discussed in 1.41 and 1.46. where a registered plan engages in certain option writing strategies or foreign exchange trading, it may be considered to be carrying on a business. The same result may arise where a registered plan engages in short selling (which is where an investor sells property they do not own) or securities lending. Note that, because the restriction on borrowing for TFSAs (discussed in 1.83 ) applies to any property not just money, a short sale within a TFSA is effectively prohibited. 1.91 The decision in Prochuk v The Queen. 2014 TCC 17, 2014 DTC 1050 held that trading in a registered plan is not a relevant factor in determining whether a taxpayer is carrying on a trading business outside of the plan. This decision does not stand for the proposition that the trading of securities in a registered plan will not in any circumstance be considered to be carrying on a business by the plan. Obligations of registered plan trustees 1.92 Responsibility for compliance with the qualified investment rules generally lies with the trustee of the registered plan. In the case of RESPs, responsibility may be shared between the trustee and the promoter. In some cases, the trustee may require the annuitant, holder or subscriber of the registered plan to provide the trustee with evidence for the purpose of determining qualified investment status. In these cases, the trustee must exercise due diligence in satisfying itself that the documentation provided is sufficient. The CRA may ask the registered plan trustee to demonstrate how it determined that a particular property was a qualified investment. 1.93 Subsection 207.01(5) requires the trustee of an RRSP, RRIF or TFSA to exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility of the plan holding a non-qualified investment. Paragraph 146.4(13)(d) imposes a similar obligation on the trustee of an RDSP. If a trustee fails to comply with this obligation, the trustee is liable to a penalty under subsection 162(7) . 1.94 The trustee of a registered plan is required to file the tax returns referred to 1.78 and 1.79 on behalf of the trust and remit any balance due. If the registered plan trust does not have sufficient assets to pay any taxes owing (for example, because of a withdrawal or transfer of assets to another institution), the trustee may be held responsible for the tax pursuant to section 159 . 1.95 The trustee of an RRSP, RRIF or TFSA is also required to report information to the CRA and the annuitant or holder if the RRSP, RRIF or TFSA begins or ceases to hold a non-qualified investment in a year. For information on these reporting obligations, refer to: 1.96 The Act requires that all contributions, acquisitions and dispositions of property, distributions, and any other transactions involving a registered plan occur at fair market value. Otherwise, adverse tax consequences will arise. While the term fair market value is not defined in the Act, it generally is considered to mean the highest price expressed in terms of money that can be obtained in an open and unrestricted market between informed and prudent parties, who are dealing at arms length and under no compulsion to buy or sell. The determination of fair market value is a question of fact. 1.97 It is the responsibility of the registered plan trustee to determine the fair market value of property involved in a transaction. In the case of RESPs, responsibility may be shared between the trustee and the promoter. In some cases, the trustee may require the annuitant, holder or subscriber of the registered plan to provide evidence to determine the propertys fair market value. In these cases, the trustee must exercise due diligence in satisfying itself that the documentation provided is sufficient. The CRA may ask the registered plan trustee to demonstrate how the fair market value of a particular property was determined. 1.98 Except for RESPs, it is common for registered plan trustees to have an agreement with an agent, such as an investment broker, that allows the agent to provide the trustee with certain administrative and investment functions. However, the ultimate responsibility for ensuring that a registered plan complies with the qualified investment rules always remains with the trustee. 1.99 All qualified investments of a registered plan must be held by the trustee of the registered plan and not by the annuitant, beneficiary, holder or subscriber under the registered plan. In the case of a share or other security, registration of the security in the name of the trustee demonstrates holding by the trustee. However, there are situations where a security may be considered a qualified investment for a registered plan even though the trustee is not the registered holder of the security. This can happen, for example, where a security dealer holds the qualified investments of the registered plan as the agent for the trustee and it is necessary to register the investments in the dealers name. It can also happen where securities are issued and processed through a central depository for securities, such as CDS Clearing and Depository Services Inc. Where the registration and trading of a security is maintained by a central depository for securities and the security is otherwise a qualified investment, the security will be a qualified investment for a registered plan if the security is held for the registered plan. Statutory or regulatory authority 1.100 The following table lists the specific statutory or regulatory authority for each type of qualified investment described in the Chapter. Specific statutory or regulatory authority for each type of qualified investment Application This Chapter, which may be referenced as S3-F10-C1. is effective September 2, 2016 and replaces and cancels Interpretation Bulletin IT-320R3. Qualified Investments Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds . Any technical updates from the cancelled interpretation bulletin can be viewed in the Chapter History page. Except as otherwise noted, all statutory references in this Chapter are references to the provisions of the Income Tax Act . R. S.C. 1985, c.1 (5th Supp.). as amended and all references to a Regulation are to the Income Tax Regulations . C. R.C. 1978, c. 945. as amended. Links to jurisprudence are provided through CanLII. Income tax folios are available in electronic format only. Sections 146, 146.1, 146.2, 146.3, 146.4, 204, 205, 206.1, 207.01, 207.04 and 207.1, and section 4900 of the Regulations. Date modified: 2016-09-01 Secondary menu