# Non Qualifying Investment for a TFSA



## ttibsen (Sep 27, 2015)

So I got a bit of a shock today on opening my mail. There was a letter from TD Direct Investing telling me that I was being taxed in my TFSA on a holding that was classed as a non qualifying investment. The investment in question is - Alexco Resources (AXU) - that trades on the TSE.








What?? First of all, wouldn't they have had a duty to inform me at the time the order to buy AXU was placed, that it was a non-qualified investment? Secondly, why would this be a non-qualified investment? It's a silver miner that trades on the TSE. I thought that any stock qualifies for inclusion in a TFSA. To further add to the mystery, a portion of my TFSA is held in US funds and in that portfolio I have SILJ an ETF that trades on the NYSE. I haven't received a similar notice of non-qualification for that security. What gives?


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## Thal81 (Sep 5, 2017)

Did you buy and sell quickly? Like, within a day or a few days?


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## ttibsen (Sep 27, 2015)

Thal81 said:


> Did you buy and sell quickly? Like, within a day or a few days?


No. I bought 2900 shares on November 10 and have held them ever since.


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## Spudd (Oct 11, 2011)

That seems wrong, I think you should phone them and make them explain themselves.


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## ttibsen (Sep 27, 2015)

Spudd said:


> That seems wrong, I think you should phone them and make them explain themselves.


Yes I plan to do that. I wanted to get some feel from this forum as to whether this particular investment was in fact non-qualifying but from the limited responses that I have received so far - it would seem that I am OK.


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## Fain (Oct 11, 2009)

your fine. it was just picked up wrong by their automation.


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## ttibsen (Sep 27, 2015)

Fain said:


> your fine. it was just picked up wrong by their automation.


Yes - I sure hope that is the case. I tried to call TD Direct Investing about this. They used to be available for help 24 / 7 but now it's just Monday - Friday (7AM - 6PM). Service ain't what it used to be😕


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## Fain (Oct 11, 2009)

ttibsen said:


> Yes - I sure hope that is the case. I tried to call TD Direct Investing about this. They used to be available for help 24 / 7 but now it's just Monday - Friday (7AM - 6PM). Service ain't what it used to be😕


I worked at a company that used to email a similar email to clients inadvertently. Thousands of clients would think WTF. . . ALL TSX and TSXV stocks are eligible for TFSA.


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## crackerjack (Jul 22, 2014)

ttibsen said:


> So I got a bit of a shock today on opening my mail. There was a letter from TD Direct Investing telling me that I was being taxed in my TFSA on a holding that was classed as a non qualifying investment. The investment in question is - Alexco Resources (AXU) - that trades on the TSE.
> View attachment 21545
> 
> What?? First of all, wouldn't they have had a duty to inform me at the time the order to buy AXU was placed, that it was a non-qualified investment? Secondly, why would this be a non-qualified investment? It's a silver miner that trades on the TSE. I thought that any stock qualifies for inclusion in a TFSA. To further add to the mystery, a portion of my TFSA is held in US funds and in that portfolio I have SILJ an ETF that trades on the NYSE. I haven't received a similar notice of non-qualification for that security. What gives?


Makes no sense to me - it indeed trades on the TSX exchange. I would be asking why that's not a non qualifying investment. Point them to the following site from the Government of Canada: Designated Stock Exchanges - Canada.ca

Good luck!


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## Money172375 (Jun 29, 2018)

Any update on this?


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