Royal LePage Realty Plus Oakville

Putting Your Profits to Work…

The government has passed the contribution limit for (TFSA) Tax Free Savings Accounts into law! Starting in 2015 and during subsequent years, you can invest up to $10,000 annually. If you’re thinking about ways to invest your profits from a home sale, then this increase could become a part of your strategy.

The Canadian government proposed raising the annual contribution limit for tax-free savings accounts (TFSAs) from $5,500 to $10,000 in its April budget announcement. With the Economic Action Plan 2015 Act receiving royal assent, this proposed change has now passed into law.

So, what are the advantages of a TFSA?

  1. Tax-free investment income with a wide range of investment options
  2. Tax-free withdrawals
  3. Unused contribution room can be carried forward and accumulated in future years
  4. Full amount of withdrawals can be put back in future years (although if one were to recontribute in the same year that they withdrew, it may result in an over-contribution that would be subject to a penalty.)

Contributions to a TFSA are not tax-deductible, but income earned within a TFSA or withdrawals do not affect one’s eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.

Perhaps you’re thinking about selling and downsizing. We can help with that. If so, you may end up with some monies to invest. We can help there too through our connections to talented financial planners,, mortgage specialists and more. Together, we can help you achieve your goals. 

This entry was posted in Buying and Selling, Investing.

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