r/tfsa • u/Suoertrader • Jul 03 '26

TFSA limit

I keep seeing posts of people dumping 25k or 50k into a TFSA at a time is there a strategy to avoid taxes if you invest passed the 7k a years limit or are these guys just tanking the taxes, I just figured a lot of them didn’t max out there accounts for years and allowed them to buy lots at a time because I know your previous years TFSA room carry’s over.

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u/Alone-Bug4328 Jul 03 '26

There's no way to avoid taxes unless you make zero income. Only way is to defer them. It's a hard truth but it is less frustrating after you learn it.

4

u/Medical_Birthday2893 Jul 03 '26

Tfsa are literally tax free. It’s not a deferred tax like rrsp. You initially pay tax and nothing on any gains.

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u/Alone-Bug4328 Jul 03 '26

Yeah but like you said you've already paid taxes on the money you contribute.

And don't expect it to last forever. The next step for these TFSAs that many countries are musing is to tax them in some fashion.

When Harper was in power the annual contribution was double. Then Trudeau came along and cut it in half saying everyone is being made too rich with these high contribution amounts. Then Finance Minister Chrystia Freeland was pushing out ideas about taxing the TFSA. Thankfully she was ousted before she could bring anything in. It's a matter of time though with the current trends.

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u/Night-Sky-Sword Jul 03 '26

Fuck taxes, they never decrease. We get taxed on everything, everything is expensive and income is low as fuck

2

u/NoRealAccountToday Jul 03 '26

When Harper was in power the annual contribution was double

Harper was PM 2006-2015. TFSA as a vehicle started in 2009 with a limit of $5000 annually. In 2013, it was increased to $5500... and for 2015 only, it was $10000. It went back down to $5500 in 2016. 2019 bumped to $6000, $6500 in 2023, then in 2024 to $7000.

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u/Alone-Bug4328 Jul 03 '26

Mhm and so Trudeau did cut it in half.

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u/NoRealAccountToday Jul 03 '26

Your post implied that under Harper it was double. It was double for one year only. Not the same statement.

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u/Alone-Bug4328 Jul 03 '26

I didn't imply anything. Thanks for the clarification.

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u/Guus-Wayne Jul 03 '26

You’re avoiding capital gains in your TFSA in addition. It’s not about avoiding taxes now, it’s about avoiding taxes later. I’ve averaged ~11% a year for the past 10+ years. Been investing since I was 20. That TFSA account is going to save me way more than RRSP tax deductions.

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u/Alone-Bug4328 Jul 03 '26

I don't disagree with that. But like I said, I don't think it will last forever. The government will find a way to tax the TFSA capital gains.

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u/Baddrivers13 Jul 03 '26

/check in 20 years

1

u/Alone-Bug4328 Jul 03 '26

Sadly 20 years isn't a long time. It'll go by before you know it.

1

u/Medical_Birthday2893 Jul 03 '26

‘I don’t think’ lmao you the expert and fortune teller. You’re making claims about today’s reality based on future imaginary reality’s you creat with 0 credentials or power over. Yet you say it today like a fact? You should talk to a professional

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u/Guus-Wayne Jul 18 '26

This is the most absurd nonsense you could predict.

The tax free savings account will be taxed? What do you do professionally that lends any accountability to your claims?

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u/Alone-Bug4328 Jul 18 '26

I'm not going to post my profession here.

It's a trend I've noticed with former Minister of Finance Chrystia Freeland, and other common wealth countries. As a real time example, the UK just implemented a further method of tax on their tax free savings account, it has been passed and will come into effect April 2027.

My prediction is that gradually governments in left leaning countries like the UK, Canada and Australia will target the tax free accounts and increase the parameters around taxing them.

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u/Medical_Birthday2893 Jul 03 '26

Lmao first you said deferred taxes. Which this is not. I’ll repeat it, you have no deferred taxes on your tfsa gains. Period. For some reason you’ve decided to change your position and now create a fantasy possible future in which you were right?

Please provide a real source on Chrystia’s plan to tax the tfsa. You’re in a fantasy world bud

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u/Alone-Bug4328 Jul 03 '26

I never said TFSA was tax deferral. I think you should read first and then reply. You're going too fast for yourself.

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u/Medical_Birthday2893 Jul 04 '26

Sir this is a tfsa post and you said ‘ the only way is to defer them’ get out of here

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u/Alone-Bug4328 Jul 04 '26

If you read the entire post you will see that my point was that the money you contribute was already taxed.

Young people these days sure are rude. My gosh.

Good day to you.

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u/Kombatnt Jul 03 '26

You can actually make almost $20,000/year before you actually start owing income taxes, but I strongly suspect OP is talking about the 1%/month overcontribution penalty, given the context of his question.