Last updated: Mar-18-2019

TFSA losses
3/18/2019 10:00:40 PM
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Gordon Pape writes on common-sense wealth-building strategies.

By Gordon Pape  | Monday, December 27, 2010


Q – Are losses within a Tax-Free Savings Account re-contributable in the same way as withdrawals, i.e., in the following year? For example, suppose I was to invest $15,000 in my TFSA account (assuming that’s my limit in 2011) entirely in call and/or put options and they all expired worthless. Could I then contribute a maximum of $20,000 to my TFSA in 2012 ($15,000 in losses plus $5,000 in new contribution room)? – Jim E.

A – No. Losses incurred within a TFSA do not give rise to additional contribution room, nor are they eligible capital losses for tax purposes. In the example you cite, your contribution room in 2012 will be only $5,000. The $15,000 you blew on options is lost forever. – G.P.

Gordon Pape is one of Canada’s best-known personal finance commentators and mutual fund experts and a regular contributor to the Fund Library. Click here to submit your question to Gordon.

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The foregoing is for general information purposes only and is the opinion of the writer. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. However, please call the author to discuss your particular circumstances.

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