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Posted

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

 He told me we have to be careful when moving the money to TFSA as we might end up paying more tax. 

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

  • 6 months later...
Posted

Could you share the document where you performed the calculations? The market situation is unstable now. Stocks of companies change their indicators every day, and brokers are lost. For many years I have been dealing with my capital and investments independently, thinking I could save money and gain experience.  But over time, I realized I needed to get comprehensive wealth management solutions and ask for a financial advisor. Due to the large amount of work, I could not always monitor the receipts and take the necessary steps at certain moments.  A specialist will help you better understand this topic and avoid major risks.

Posted

Hello Muragan,

Please note this is a public forum, you should not share private and confidential documents or statements.  For financial planning advice you should consult with a financial advisor or accountant.

  • 3 weeks later...
Posted
On 4/20/2022 at 7:55 PM, Murugan said:

 ... He told me we have to be careful when moving the money to TFSA as we might end up paying more tax. 

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

I'm not sure what the confusion is.

If you over-contribute money or stock to the TFSA then the default penalty is 1% of the over amount per month.  Withdrawing the excess or having new TFSA contribution granted from the annual amount and/or previous year withdrawals will help fix it.

 

Assuming your figure of $80K of TFSA contribution room is correct and you are talking about contributing cash, all you have to do is make sure the TFSA contribution is $80K or less.

 

Make sure you are aware of the TFSA contribution rules plus make sure to track the available TFSA contribution room in real time.

I do this in a spreadsheet where in Jan, I add the annual amount plus the previous year's withdrawals to my running total.  As I make contributions, I subtract them.

 

If you have an account with CRA, you can check their annual numbers.  Be aware that CRA does not find out about the activity in however many TFSA accounts you have until the FI sends them the data.  I have noticed that some are quick to send the data the first week of Jan the following year while others send at the deadline (IIRC end of Feb the following year).  So this late in 2022, all CRA will have is the up to end of 2021 data and what contribution room was granted in 2022.  Any 2022 contributions or withdrawals won't be sent until 2023. 

Keeping your own real time numbers is much better IMO.

 

Cheers

 

PS

Be aware that if you buy US stock that pays dividends, the US will take their withholding tax from the dividends.  This is not a Canadian tax but an American one.

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