Canadian Tax Free Savings Account (TFSA)

[Kail68]

I'm wondering if anyone can help me out here. Can you hold foreign currency in a TFSA? It looks like you can't with the major banks, buy I've read that you might be able to at other institutions. Problem is that I have no idea what these other institutions may be.

If you could, wouldn't this negate having to pay any taxes what so ever once the dinar RVs? The whole premise of a TFSA is that you never have to pay tax on anything in that account.

Anyways, it was just a thought I had. You probably can't but it would be awesome if there was some place that allowed you to do this.

[breault]

Nothing is free, and the one thing you can count on in this life is taxes! One way or another, at some point in time, we will all have to pay our taxes. I cannot see a way around that one. Just my opinion, though.

[BJinMontreal]

I'm wondering if anyone can help me out here. Can you hold foreign currency in a TFSA? It looks like you can't with the major banks, buy I've read that you might be able to at other institutions. Problem is that I have no idea what these other institutions may be.

If you could, wouldn't this negate having to pay any taxes what so ever once the dinar RVs? The whole premise of a TFSA is that you never have to pay tax on anything in that account.

Anyways, it was just a thought I had. You probably can't but it would be awesome if there was some place that allowed you to do this.

Unfortunately you can't hold foreign currency within a tax-free savings account - you can hold stocks, or money market funds, but not a speculative currency. I checked with both ING Direct and TD Waterhouse about this, because I was thinking the same thoughts. We are left with no choice but cashing them in and paying our taxes.

By the way - I was also told the most money you could hold in a TFSA was $5,000,000

[Kail68]

I knew you couldn't with TD and the other big banks. I'm going to call a place that might be able to do it on Monday and will let you know.

Where did you hear that you can hold a max of 5 mil in a TFSA? I know it's only insured up to 100k, and that you can only contribute 5k a year, but I had not heard about a 5,000,000 ceiling. Interesting though!

[BJinMontreal]

I knew you couldn't with TD and the other big banks. I'm going to call a place that might be able to do it on Monday and will let you know.

Where did you hear that you can hold a max of 5 mil in a TFSA? I know it's only insured up to 100k, and that you can only contribute 5k a year, but I had not heard about a 5,000,000 ceiling. Interesting though!

Sorry for the confusion - NOT within a TFSA - but a regular savings account at ING Direct.

[dinarokie]

I'm wondering if anyone can help me out here. Can you hold foreign currency in a TFSA? It looks like you can't with the major banks, buy I've read that you might be able to at other institutions. Problem is that I have no idea what these other institutions may be.

If you could, wouldn't this negate having to pay any taxes what so ever once the dinar RVs? The whole premise of a TFSA is that you never have to pay tax on anything in that account.

Anyways, it was just a thought I had. You probably can't but it would be awesome if there was some place that allowed you to do this.

you can open up a trust fund, and have it pay you monthly tax free ..... it cost around $2500 to start up a trust fund... you can make it buy you a car every 2 years or have it do almost anything you want it to ... check at meril lynch, banks, edward jones ... etc etc

[smee2]

I'm wondering if anyone can help me out here. Can you hold foreign currency in a TFSA? It looks like you can't with the major banks, buy I've read that you might be able to at other institutions. Problem is that I have no idea what these other institutions may be.

If you could, wouldn't this negate having to pay any taxes what so ever once the dinar RVs? The whole premise of a TFSA is that you never have to pay tax on anything in that account.

Anyways, it was just a thought I had. You probably can't but it would be awesome if there was some place that allowed you to do this.

Short answer, no you cannot. Ask your banker which is what I did and everyone who has a banking question should do. Asking non bankers is just asking for confusion and problems.

Next, the whole premise of a TFSA is NOT that you never have to pay tax on anythng in that account ... ithe whole premise is that it is an account worked out by the banks and the federal government, meaning the government of whatever country it is in, to encourage people to do two things ... first, to save money, as the governments are realizing they cannot cover all the government pension promises. Second purpose is to get you to keep a bank presence ... they get paid one way or another and with this type of account it is usually a matter of them not charging you interest but getting some concession from the government that seems unrelated, like having more of your information on file and perhaps future easy access.

Last point, there will be NO one place above the others that will allow what you surmise. Perhaps another country but that discussion is currently ongoing in another thread. Not worth even trying that one. Canada, USA, ... TSFA is all part of that particular country's banking rules, which apply to any money keeping, interest-charging business such as banks, credit unions, lending institutions, trust and insurance companies and other funding consortiums.

Bottom line ... you have a tiger by the tail with this investment. Get enough dinar to make sure your "expenses" will be covered and leave you with what you need, and pay up ... like everyone else. I am not a tax lover, but we do have to accept the responsibility as well as the benefits of a democratic society. that means paying your share. It isn't as if all invstments are tagged "pay it all to the government" ... there are percentages and rules and ways to work around things without kicking them under the rug and therefore putting yourself and your money in jeopardy. Find a good tax accountant and/or tax lawyer and find out what you need to know before if you can. After if you cannot do it before. Then just go with it.

And don't even eccept any advice from me ... get professional, paid for advice, or sometimes you can get it free through college or university legal or accounting programs that have students looking these things up for you and sometimes even publishing answers on web pages. Try the Law Society of your country or whatever the federal registered accounting professional organization is for you.

and ... good luck.

smee2

[Kail68]

Short answer, no you cannot. Ask your banker which is what I did and everyone who has a banking question should do. Asking non bankers is just asking for confusion and problems.

I agree, I've asked all of the big banks about it and they've said no. I've asked smaller operations and they've said no. They've said that technically you can hold foreign currency within a TFSA, but good luck finding an institution that allows it. Questrade allows USD but that is about the extent of it.

Next, the whole premise of a TFSA is NOT that you never have to pay tax on anythng in that account ... ithe whole premise is that it is an account worked out by the banks and the federal government, meaning the government of whatever country it is in, to encourage people to do two things ... first, to save money, as the governments are realizing they cannot cover all the government pension promises. Second purpose is to get you to keep a bank presence ... they get paid one way or another and with this type of account it is usually a matter of them not charging you interest but getting some concession from the government that seems unrelated, like having more of your information on file and perhaps future easy access.

How the Tax-Free Savings Account Works

•Investment income earned in a TFSA is tax-free.

•Withdrawals from a TFSA are tax-free.

Taken straight from the Gov't of Canada webpage. You are depositing after tax money into this account, so it has already been taxed. Any income or profit that this account generates is tax free though.

Last point, there will be NO one place above the others that will allow what you surmise. Perhaps another country but that discussion is currently ongoing in another thread. Not worth even trying that one. Canada, USA, ... TSFA is all part of that particular country's banking rules, which apply to any money keeping, interest-charging business such as banks, credit unions, lending institutions, trust and insurance companies and other funding consortiums.

Bottom line ... you have a tiger by the tail with this investment. Get enough dinar to make sure your "expenses" will be covered and leave you with what you need, and pay up ... like everyone else. I am not a tax lover, but we do have to accept the responsibility as well as the benefits of a democratic society. that means paying your share. It isn't as if all invstments are tagged "pay it all to the government" ... there are percentages and rules and ways to work around things without kicking them under the rug and therefore putting yourself and your money in jeopardy. Find a good tax accountant and/or tax lawyer and find out what you need to know before if you can. After if you cannot do it before. Then just go with it.

And don't even eccept any advice from me ... get professional, paid for advice, or sometimes you can get it free through college or university legal or accounting programs that have students looking these things up for you and sometimes even publishing answers on web pages. Try the Law Society of your country or whatever the federal registered accounting professional organization is for you.

and ... good luck.

smee2

I'm buying Dinar every time I get paid. Not much by any means (well, in comparison to some of you guys I bet ) and I'm not putting off rent or bills, it's just what I can afford. I understand that this could turn out to be huge for all of us and I am definately OK with paying the taxes in regards to this investment. I just had a hair brained idea about the new TFSA that are only available in Canada. Turns out Foreign Currency IS an eligible investment, except no one will allow you to hold it in your account. I can't wait for the RI or RV to happen, but I'll be honest, I'm quite happy waiting another 4 or 5 months

[pokerplayer]

Unfortunately you can't hold foreign currency within a tax-free savings account - you can hold stocks, or money market funds, but not a speculative currency. I checked with both ING Direct and TD Waterhouse about this, because I was thinking the same thoughts. We are left with no choice but cashing them in and paying our taxes.

By the way - I was also told the most money you could hold in a TFSA was $5,000,000

Not quite correct. It is 5K per year, but you can put in as much as you want.

pp

[Happy Man]

First you dont pay any taxes on gain that are made on any security that are held inside ur TFSA.

So if you put 15M$ dinars that you have payed 15K and it RV at 3 then you have inside ur TFSA 45M$ tax free.

You are allowed to hold in your TFSA or any registered account like RRSP foreign currency (See IT-320-R3) from goverment canada.

The problem that we are facing is to find a broker that will accept to hold your dinar in kind in exchance for an entry in your TFSA.

And bank or mainstream TFSA providers wont do that. I am still looking to find one.

Some broker can hold gold in kind for you but I havent find one yet that will accept paper money.

good luck to all

from a canadian fellowman.

If anyone find a broker that will do it please let everyone know ASAP.

Thank all