# Is it true about TFSA?



## Melicoy (Nov 15, 2015)

Is it true that a TFSA really is not worth getting unless you invest over $5000?
My friend said I have to report any interest over $50 as income to CRA
and at 1% interest on $5000 over 1 year that's $50 in a year yes?


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## GreatLaker (Mar 23, 2014)

Nope!!

You can read about TFSAs here: http://www.cra-arc.gc.ca/tfsa/

TFSAs are "tax-free" savings accounts. All principal, interest, dividends and capital gains can be withdrawn at any time without paying taxes.


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## Davis (Nov 11, 2014)

You have to report interest earned in taxable accounts period. Financial institutions issue tax statements if they pay more than $50 in interest, but you have to report it yourself if it is less than $50.

Unless it is in a tax-free savings account, because there the interest is tax-free.


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## james4beach (Nov 15, 2012)

Melicoy, it makes sense no matter how much money is in it. As others said, outside the TFSA you are still supposed to report taxable interest income even if it's under $50 (you just don't receive a tax slip).

Putting the money in your TFSA will still save you effort. It's a great idea, even under $5,000.

It becomes even sweeter when you're dealing with investments such as mutual funds and ETFs, because then you don't have to worry about any of the typical tax reporting that goes along with investments.


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## peterk (May 16, 2010)

Melicoy said:


> Is it true that a TFSA really is not worth getting unless you invest over $5000?
> My friend said I have to report any interest over $50 as income to CRA
> and at 1% interest on $5000 over 1 year that's $50 in a year yes?


What your friend is saying is a simplified and illegal explanation, but yes it is "true".

If you don't claim a paltry <$50 in interest every year, you will be just fine. I'm sure millions of Canadians do it every single year in complete ignorant bliss and nothing bad ever happens. I know I certainly did up until my early 20s, and I imagine a good 90% of all young students or low income people do as well without knowing.

Not that is should be condoned, but neither should pulling through a 4-way stop without coming to a complete stop at the line first. :rolleyes2:

Now, even if you are ok with illegally non-reporting, you should _still open a TFSA savings account and use it right away_ because:

1) The interest rate paid on a TFSA account is often higher than the rate on regular bank savings accounts.

and

2) Using the TFSA *now* will grow your contribution room with the interest you accumulate each year. That won't matter right now or for a number of years, but eventually later in life you will probably be saving more than your TFSA has room for, or even investing in stocks in your TFSA account. At this point, the extra bit of contribution room that you generated years early will be very welcomed and WILL save you money on your taxes at that point.


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## vi123 (Oct 29, 2015)

Melicoy said:


> Is it true that a TFSA really is not worth getting unless you invest over $5000?
> My friend said I have to report any interest over $50 as income to CRA
> and at 1% interest on $5000 over 1 year that's $50 in a year yes?


Is this really the type of question that someone who allegedly owns at least 18 properties would be asking? - http://canadianmoneyforum.com/showt...-property-in-Canada-today?p=896609#post896609


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## peterk (May 16, 2010)

^ Hmm...


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## Melicoy (Nov 15, 2015)

Thanks everyone.
I was just talking this over with a friend yesterday and it got me thinking. 
Owning real estate has nothing to do with it vi123 and peterk
I'd rather ask you guys with experience than spend 3 hours doing research.
Thanks again to all those who answered!!!


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## humble_pie (Jun 7, 2009)

melicoy please stick around, u are priceless

priceless as in grab 3 free hours of advice & help from others, but never share anything yourself:



Melicoy said:


> Well there is one city I am investing in and making a good return but I have done my due diligence and hard work and not about to give it away.





Melicoy said:


> Owning real estate has nothing to do with it vi123 and peterk
> I'd rather ask you guys with experience than spend 3 hours doing research.



actually i like this one even better:



Melicoy said:


> It might be illegal to ask for a key or pet but I do anyways. If they question it I scratch it out. Also lost or misplaced keys are $125.
> 
> Also [if] the current rent is advertised at $900/month when they sign the lease I explain that the rent is $1000 but because you ALWAYS pay the rent on time I give you a discount of $100. The first time you are late it goes to the original $1000. No excuses or second chances.



melicoy you're also the dude asking if he has to report $50 on his tax return, right?

(aside to vi123) (good thing you caught on) (we should encourage him to stay though) (he so entertaining)


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## vi123 (Oct 29, 2015)

Multi-province real estate mogul, ruthless landlord, and.... TFSA noob with 5,000 to invest?


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## Melicoy (Nov 15, 2015)

Interesting. I understand how this works now. 

If you stop *cherry picking* you will see I have given lots of advice and will continue to do so. I am also new here so I have more to offer.

But that's ok I am just asking a simple question about TFSA to get better understanding about something I do not know. 

It's NOT about the $5000 or about claiming $50 interest to the govt it's about learning something new and sharing what I know.

I thought the purpose of a forum was to share educate and learn? I AM ASKING BECAUSE I WANT TO LEARN SOMETHING NEW. IF SOMEONE ASKES ME ABOUT REAL ESTATE I WILL NOT BELITTLE THEM BECAUSE THEY HAVE A 2 MM PORTFOLIO...

I have nothing to prove to anyone here and I understand your rants above but you clearly refuse to see my point.

You sound a little angry humble_pie. Did I hit a nerve? Have you been a *BULLY most of your life?* I remember a guy in high school that acted the same way as you do and was a bully...

Anyways MOVING on and leaving the bullies and non contributors in the dust. I have received my answer and APPRECIATE it very much THANK YOU. - GreatLaker - Davis - james4beach and peterk


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## gibor365 (Apr 1, 2011)

> Have you been a BULLY most of your life? I remember a guy in high school that acted the same way as you do and was a bully...


 For sure! Only she's not a guy :biggrin: (maybe used to be )


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## vi123 (Oct 29, 2015)

In defense of humble_pie, melicoy is clearly making sh*t up. 

I really doubt that anyone with a 25-property real estate portfolio (a number that seems to grow with each post!) would be on here asking basic questions about his first ever TFSA contribution. 

Then again, Donald Trump owns a lot of property and he talks a lot of nonsense too. So who knows!


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## Eclectic12 (Oct 20, 2010)

Melicoy said:


> Is it true that a TFSA really is not worth getting unless you invest over $5000?


Better question is when is it not worth having money grow tax free?




Melicoy said:


> ... My friend said I have to report any interest over $50 as income to CRA
> and at 1% interest on $5000 over 1 year that's $50 in a year yes?


Your friend is wrong ... you have to report all income, whether it's enough for a financial institution to issue a T slip for or not.

Practically, though ... I doubt CRA is going to worry too much about $50. If they do decide to .... expect the penalities and interest to far outweight any short term gain.


Then too ... if you can earn tax free say 5% as dividends - why would someone who chooses to earn 1% mean it's not worthwhile?


Cheers


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## gibor365 (Apr 1, 2011)

> I really doubt that anyone with a 25-property real estate portfolio (a number that seems to grow with each post!) would be on here asking basic questions about his first ever TFSA contribution.


 Why not?! My wife is very smart and in 5 years became senior director architecture in one of the major Canadian banks, but she has no idea about TFSA, RRSP, LIRAs and so on...she didn't even pay 1 bill all her life  . I manage all 100% include all her 4 investment accounts 



> I doubt CRA is going to worry too much about $50.


 me either  even though I report everything ...


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## Melicoy (Nov 15, 2015)

gibor said:


> Why not?! My wife is very smart and in 5 years became senior director architecture in one of the major Canadian banks, but she has no idea about TFSA, RRSP, LIRAs and so on...she didn't even pay 1 bill all her life  . I manage all 100% include all her 4 investment accounts
> 
> me either  even though I report everything ...


THANKS gibor for the explanation to mr. vi123. There is always that 5% that seem to dwell / live on these types of emotions. 

I have CHOSEN to now ignore these people and keep on keeping on.

I know there are great people in here so I will continue to contribute as much as possible. 

My time is more valuable than Miss. humble_pie and Mr.vi123


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## humble_pie (Jun 7, 2009)

Melicoy said:


> Interesting. I understand how this works now.
> 
> I have given lots of advice and will continue to do so. I am also new here so I have more to offer.




no, i am not a bully. So sorry, but i cannot help the fact that i find you highly entertaining. No landlord i've ever had has behaved even remotely the way you describe. Perhaps western canada is different from eastern canada, the US & europe, though.

there are numerous owners of rental real estate properties in this forum. They seem to offer good suggestions to each other. They don't boast about their hot property locations, then announce that they won't share. They don't break laws or by-laws. They seem to respect building codes & landlord/tenant codes.

i've never even heard of a landlord who could get away with advertising a rental for $900, then telling an inquiring tenant that the rent is really $1000 unless he or she happens to please you each month, in which case the rent might drop down to $900. Or it might not.

i for one wouldn't waste one second with any party trying to peddle a dodgy deal like that. It's a standout fright. That's why i said i liked it. So quaint. So picturesque. Evidently our senses of humour are quite different, though.

good luck in cmf forum, Melicoy.




Melicoy said:


> It might be illegal to ask for a key or pet but I do anyways. If they question it I scratch it out. Also lost or misplaced keys are $125.
> 
> Also One other thing I employee is a rental discount if the rent is paid on time every time. An example is the current rent is advertised at $900/month when they sign the lease I explain that the rent is $1000 but because you ALWAYS pay the rent on time I give you a discount of $100. The first time you are late it goes to the original $1000. No excuses or second chances.


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## Synergy (Mar 18, 2013)

humble_pie said:


> i've never even heard of a landlord who could get away with advertising a rental for $900, then telling an inquiring tenant that the rent is really $1000 unless he or she happens to please you each month, in which case the rent might drop down to $900. Or it might not.


Misleading, false advertising, the art of manipulation, etc. Call it what you want, it's just wrong in my books.


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## Davis (Nov 11, 2014)

I don't think I'd want to do business with someone who is paying tricks to try to get around the law. I spent longer as a landlord than I did as a tenant, but this just feels sleazy to me. Ick.


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## peterk (May 16, 2010)

Unfortunately I think I must agree with Vi123 and HP. Something is up with this Melicoy fellow.

Perhaps it's just unfortunate happenstance however, good sir. I hope that you stick around to continue to learn and contribute in a manner that doesn't cause further suspicion. 

You also seem quick to pull the trigger on who you proclaim you will ignore from now on. HP is an excellent resource on this forum, and contributes a great deal of time and effort and patience to teach newbies and seasoned investors a thing or two. Even if she is wont to riling up us conservative folks on non-financial topics for her own entertainment :biggrin:. Feel free to ignore that, but ignore her financial advice at your own peril.


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## kcowan (Jul 1, 2010)

peterk said:


> Feel free to ignore that, but ignore her financial advice at your own peril.


I think jumping to conclusions is the common fault among most participants here. You sometimes need a thick skin to get through the attitudes here and in other forums.


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## HaroldCrump (Jun 10, 2009)

Melicoy said:


> THANKS gibor for the explanation to mr. vi123. There is always that 5% that seem to dwell / live on these types of emotions.
> I have CHOSEN to now ignore these people and keep on keeping on.
> ...
> My time is more valuable than Miss. humble_pie and Mr.vi123


Melicoy, you are behaving like a bull in a china shop.
You are brand new here - take a few days/weeks to settle in, get to know the culture & decorum of the forum, and treat everyone with respect, before forming any opinions.

I personally don't think you have been treated unfairly by anyone.
For you to already start complaining about other members within your first few days doesn't seem very fair.

And just so you know, there are at least half a dozen _truly seasoned_ landlords on this forum - a couple of them have been in the property ownership business for decades, not years, and have lived through several booms and busts.
Similar for stocks/bonds investors.
I suggest you take a more respectful approach.


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## none (Jan 15, 2013)

HaroldCrump said:


> I suggest you take a more respectful approach.


You would be wise to take some of your own advice.


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## HaroldCrump (Jun 10, 2009)

none said:


> You would be wise to take some of your own advice.


And you too, likewise.
But then "wisdom" is not something we can expect from you.


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## peterk (May 16, 2010)

none said:


> You would be wise to take some of your own advice.


Haha. You're just too much. :biggrin: Calling out HC, possibly the straightest arrow on the whole forum.

none the troll strikes again!


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## none (Jan 15, 2013)

peterk said:


> Haha. You're just too much. :biggrin: Calling out HC, possibly the straightest arrow on the whole forum.
> 
> none the troll strikes again!


Straightest arrow? hardly. more people complain about that douche-bag than any other forum personality. She sucks.


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## gibor365 (Apr 1, 2011)

none said:


> Straightest arrow? hardly. more people complain about that douche-bag than any other forum personality. She sucks.


Don't you confused between HP (She sucks ) and HC ?!


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## Melicoy (Nov 15, 2015)

none said:


> Straightest arrow? hardly. more people complain about that douche-bag than any other forum personality. She sucks.


Hi None,
When someone takes a negative approach to me NOT my QUESTION I will take it as unfaily. that includes vi123

Especially when someone else doesn't read my comments and says I am making things up... 

Such as vi123 said "I really doubt that anyone with a 25-property real estate portfolio (a number that seems to grow with each post!) would be on here asking basic questions about his first ever TFSA contribution. "

In one comment I said I had 12 properties in the lower mainland and another comment I said I have more than 25 properties (IN TOTAL Canada wide)
But vi123 would RATHER point out something 
He made a mistake rather than commenting on the QUESTION above that I asked.
And again I did NOT ask about my first ever contribution I asked about the rules involved...

To those people that wish not to share to an honest question asked why dont you take your own mom's advice and "say nothing"?

I dont have to form a thick skin? Or let bullies like Humble_pie say negative things because he is a senior at high scholl errr the forums. I just move on with my HAPPY life and you guys girls live in this rat hole of a negative world.

ON TO BIGGER AND HAPPIER PLACES and I recommend the nice ones do too. None move on while you have a chance and if you are ever in Vancouver How about we go for a coffee. 

On a last note. If vi123 and Humble_pie took their "valuable time" to research my other posts before commenting which I would place at about 30-45 min maybe I would ask for their resignation for wasting so much valuable time.


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## humble_pie (Jun 7, 2009)

melicoy, there is not one single post in this thread that supports you. On the contrary, all parties have questioned your business deals (dodgy), your business practices (ruthless) & your boastful claims (you say you have more to offer than anyone else on here.)

please look again below. This sums it up.

while you're leaving, though, won't you please take your friend with you. She hates landlords & landladies with a mortal hatred. Sues landladies. Stalks landladies. Tries to rat on landladies to the CRA, although their snitch line must regard her as a laughingstock by now. You two are going to get on just fine.




HaroldCrump said:


> Melicoy, you are behaving like a bull in a china shop.
> You are brand new here - take a few days/weeks to settle in, get to know the culture & decorum of the forum, and treat everyone with respect, before forming any opinions.
> 
> I personally don't think you have been treated unfairly by anyone.
> ...


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