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Keep Your TFSA Safe (and the CRA Happy) by Avoiding These Triggers

The article from MSN Money discusses how to maintain the safety of your Tax-Free Savings Account (TFSA) and keep the Canada Revenue Agency (CRA) content by avoiding certain triggers. It highlights that while TFSAs offer tax-free growth and withdrawals, there are specific rules that, if violated, can lead to penalties or the loss of tax benefits. Key points include not overcontributing beyond the annual limit, which can result in a 1% monthly tax on the excess amount; understanding that certain investments like non-qualified securities or day trading within a TFSA can be problematic; and being cautious with foreign investments that might be considered carrying on a business, potentially leading to tax implications. The article also advises against using TFSAs for business purposes or as collateral for loans, and stresses the importance of keeping meticulous records to prove contributions and withdrawals, especially in case of CRA audits.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/general/keep-your-tfsa-safe-and-the-cra-happy-by-avoiding-these-triggers/ar-AA1wITGt ]