Are you looking for an investment that provides tax benefits for saving? AWealth offers TFSA in Mississauga to help you reach your savings and investment goals. TFSA is a flexible account that is designed to help you save money by providing significant tax benefits. Earnings in a TFSA such as investment income including dividends and capital gains are not taxed in most cases even when its withdraw. However, TFSA with a substantial gain could be taxed. Contributions made to a TFSA are not deductible for income tax purposes unlike contributions to a RESP. A TFSA can contain cash and/or other investments such as bonds, mutual funds, certain stocks or guaranteed investment certifications (GICs).
BENEFITS OF TFSA
You can contribute up to a $6,000 tax-free to a TFSA.
You are not required to have earned income to contribute to a TFSA.
You can withdraw any money for any reason without being taxed from a TFSA.
You can choose from a variety of investment options such as bonds, mutual funds, certain stocks, savings deposit, and guaranteed investment certificates (GICs).
You do not lose the contribution room if you make a withdrawal. However, you need to wait until next year to re-contribute the money to your TFSA.
You can provide funds to your spouse so they can contribute to a TFSA without being subjected to income attribution rules.
If you do not contribute the maximum account, you can carry forward unused contribution room indefinitely. For example, if you contributed $2,500 in 2016 to your TFSA, your contribution room for 2017 would be $7,500 ($,2500 carried forward from 2016 plus $5,000 for 2017).
Your contribution are not tax-deductible. However, investment returns earned in a TFSA are not taxed even when they are withdraw.
Is it the right time to save up for a down payment?
Many people start saving for a down payment later in life. The earlier you start, the sooner you being the process of building equity. Did you know that you can use your RRSPs towards your down payment as a first time home buyer?
*Investments provided as segregated funds through Carte Financial Services Inc. and Kabis & Associates Inc. **Insurance products & services provided through Carte Financial Services Inc. and Kabis & Associates Inc. ***Mortgage products and services provided through Dominion Lending Centre Valko Financial Ltd.