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The Worst Mistakes Almost Every TFSA Holder Makes, and the CRA Is Watching

The TFSA is great, sure, but these mistakes could be keeping you from creating cash. The post The Worst Mistakes Almost Every TFSA Holder Makes, and the CRA Is Watching appeared first on The Motley Fool Canada.
The article from MSN Money discusses common mistakes made by Tax-Free Savings Account (TFSA) holders in Canada that could attract scrutiny from the Canada Revenue Agency (CRA). Key points include: not understanding the contribution limits, which can lead to over-contribution penalties; using TFSAs for short-term savings rather than long-term investment growth; withdrawing funds without considering the impact on future contribution room; and engaging in day trading within a TFSA, which might be seen as running a business, thus potentially subjecting the account to taxation. The CRA monitors these accounts to ensure compliance with tax laws, particularly focusing on activities that might suggest the TFSA is being used for purposes other than personal savings or investment. The article advises TFSA holders to be aware of these pitfalls to avoid penalties and maintain the tax benefits of their accounts.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/investment/the-worst-mistakes-almost-every-tfsa-holder-makes-and-the-cra-is-watching/ar-AA1xJjZf ]