# Tax implications of giving spouse money for his TFSA



## Amira (Aug 6, 2013)

If I give my husband money for his TFSA, does this have to be structured as a spousal loan? 

CRA's website says: "You can give your spouse or common-law partner money to contribute to their own TFSA without that amount, or any earnings on the amount, being attributed back to you."

But that wording doesn't give me certainty about whether, for tax purposes, my contribution has to be set up as a loan, meaning he has to pay me interest and I have to report that interest.

I just got off the phone with CRA (it's great they're open till 9 pm during tax period), but the agent wasn't very familiar with TFSAs and said if I want a definite answer, I have to write to the Income Tax Rulings Directorate. 

Any advice in the meantime?


----------



## Charlie (May 20, 2011)

a gift is not a loan. You're free to give funds to your spouse for a TFSA without any adverse tax consequences. You've quoted the correct bit of the CRA website.


----------



## liquidfinance (Jan 28, 2011)

I believe it's pretty clear that you can gift to a TFSA without it needing to be a loan or without fear of attribution. 

A reasonable article from 2013

https://www.woodgundy.cibc.com/wg/pdf/tax-planning-with-tfsa.pdf

About the only tax worry with a TFSA is over contribution.


----------



## Amira (Aug 6, 2013)

Thanks, Charlie and liquidfinance. You've helped set my mind at ease. And yes, the article addresses my question quite clearly.


----------

