tag:blogger.com,1999:blog-5465015914589377788.post3107722928137178145..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Income Splitting with TFSAsMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-7832504790562422092012-10-18T21:40:34.201-04:002012-10-18T21:40:34.201-04:00Blunt Bean Counter,
I found this on another websi...Blunt Bean Counter,<br /><br />I found this on another website:<br /><br />http://www.roxannehaddrell.com/tfsa.html<br /><br />Even after withdrawing the funds from the TFSA, no attribution rules are in effect. The CRA has stated that since there is no such thing as a "Spousal TFSA" that any and all funds withdrawn from the plan are the property of the TFSA owner (per phone call to CRA Oct 12, 2012). This means that money can be withdrawn and reinvested outside of the TFSA without the resulting income being attributed to the first spouse. <br /><br />So now I'm really confused.Edhttps://www.blogger.com/profile/07757486330833981941noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-22737617494830688292012-10-18T21:39:53.207-04:002012-10-18T21:39:53.207-04:00Blunt Bean Counter,
I found this on another websi...Blunt Bean Counter,<br /><br />I found this on another website:<br /><br />http://www.roxannehaddrell.com/tfsa.html<br /><br />Even after withdrawing the funds from the TFSA, no attribution rules are in effect. The CRA has stated that since there is no such thing as a "Spousal TFSA" that any and all funds withdrawn from the plan are the property of the TFSA owner (per phone call to CRA Oct 12, 2012). This means that money can be withdrawn and reinvested outside of the TFSA without the resulting income being attributed to the first spouse. <br /><br />So now I'm really confused.Edhttps://www.blogger.com/profile/07757486330833981941noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-51124967796784297432012-05-25T11:03:46.979-04:002012-05-25T11:03:46.979-04:00Darn accountants!! and a Leaf fan to boot!Darn accountants!! and a Leaf fan to boot!Big Cajun Manhttp://canajunfinances.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-56102190308195205352012-05-24T13:36:22.555-04:002012-05-24T13:36:22.555-04:00Great idea Michael, but I'm glad that there is...Great idea Michael, but I'm glad that there is a rule against it.Mike Holmanhttp://www.moneysmartsblog.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-52128744731564616112012-05-23T09:22:33.966-04:002012-05-23T09:22:33.966-04:00@Matt and @Mark: I knew someone would find the re...@Matt and @Mark: I knew someone would find the relevant law. My little scheme stays within the spouse's TFSA room, but fails when money is withdrawn. I predict that people will do this anyway even if it violates the rules.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19682967359606901292012-05-23T08:47:12.819-04:002012-05-23T08:47:12.819-04:00Michael, nice try
Subsection 74.5(12) of the Inco...Michael, nice try<br /><br />Subsection 74.5(12) of the Income Tax Act contemplates such. The attribution exemption only applies while the funds remain in the TFSA and only to the extent the contribution is made using the spouses available TFSA contribution room.<br /><br />Also, the CRA would definitely apply GAAR or some anti avoidance section to the withdrawal plan you suggest.The Blunt Bean Counternoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-34310214686211476932012-05-23T08:44:28.533-04:002012-05-23T08:44:28.533-04:00Only politically favoured demographic groups get t...Only politically favoured demographic groups get to split income. The simple answer is that if there isn't a rule against this, it won't matter. Four or five years down the line, they'll apply the GAR and crush anyone who did it.mattnoreply@blogger.com