Capital Gain & TFSA

[Murugan]

In my T5 slip, in box 24 - actual amount of dividend is 15,303,69, and in box 25 - taxable amount of dividend is 21,119, and in box 26 - Dividend tax credit is 3172

In my T4PS, in box 30 - it shows 6606.80,  and in box 31 -  it shows 9117.43, and in box - 32 it shows 1369.42 and in box 35 - it shows 2101.46.

I have roughly about $500,000 in my investor edge account.   

My advisor told me for better return, and also to save money from paying CRA, move some money to my TFSA and from there we can invest on investment with better return.

How can I calculate this while I am preparing my 2021 returns? 

[clw]

Within a TSFA, you can invest in stocks, bonds or bank interest, and none is ever taxable. Investments can be as diversified as in an RRSP. Until your investments are registered in the TSFA, there are no tax savings. You should top up your TSFA to your allowable limit to maximize tax savings. If you were 18 years of age or older in 2009, you could have contributed cumulatively up to 81500$ in 2022.

[Murugan]

3 hours ago, Murugan said:

In my T5 slip, in

box 24 - actual amount of dividend is 15,303,69, and in box 25 - taxable amount of dividend is 21,119, and in box 26 - Dividend tax credit is 3172

In my T4PS, in box 30 - it shows 6606.80,  and in box 31 -  it shows 9117.43, and in box - 32 it shows 1369.42 and in box 35 - it shows 2101.46.

I have roughly about $500,000 in my investor edge account.   

My advisor told me for better return, and also to save money from paying CRA, move some money to my TFSA and from there we can invest on investment with better return.

How can I calculate this while I am preparing my 2021 returns? 

Sorry, how to calculate how much money I can safely deposit in my TFSA without being penalized. MY TFSA contribution room is $80,000

Thank you Clw.

 how to calculate how much money I can safely deposit in my TFSA without being penalized. MY TFSA contribution room is $80,000

While filing my 2021 is there a way to calculate it?

 

[Curmudgeon]

You can't do anything now to affect the 2021 taxes. Put $80,000 into a TFSA this year to save on 2022 and future taxes.

[Murugan]

Thank you, Curmudgeon,

In fact it is for 2022.  But, since I am going to file my returns through UFILE, I am trying to get the right amount now itself.  I would appreciate if you enlighten me on this.

[Curmudgeon]

First, read up on TFSAs.

 https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html

UFile has nothing to do with it. You have to decide how much goes into a TFSA.

Right now the federal tax you are paying on the dividends is $21,119 * mt - $3172, where mt is your federal marginal tax rate. There is also provincial tax. If $80,000 of the $500,000 had been in a TFSA, that is 16% of your portfolio, federal and provincial taxes on the dividends would be 84% of what you are paying. Plus the taxable income would be lower perhaps increasing some income related credits.

Go talk to your advisor. Moving as much of your investment as you can into a TFSA is good advice. What it is invested in is up to you.

[Murugan]

Thank you kindly!