Are trading fees in a TFTA (a rebrandedTFSA) consider a withdrawl? | Tax Free Savings Accounts | Discussion forum

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Discussion forum Tax Free Savings Accounts Are trading fees in a TFTA (a rebrandedTFSA) consider a withdrawl?

Are trading fees in a TFTA (a rebrandedTFSA) consider a withdrawl?  
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2:42 pm
September 3, 2009


TorontoExpat

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I am planning to open a Tax Free Trading Account(TFTA) with Questrade. Which is basically a Tax Free Saving Account(TFSA) rebranded by Questrade. They said that the trading fees for any trading activities will be deducted directly from the balance of the account and that these deduction will not be consider as a withdrawal from the account by CRA. But I wonder if this is the correct interpretation? Logically, I think it should be consider a withdrawal and that I should be able to tally up the total annual trading cost associated with the account and add amount that to my 5k annual contribution ceiling for the following year. Does anybody know the answer to this conundrum?

I tried calling CRA, but as usual, they were clueless. Thank you in advance for your response.

5:09 pm
September 3, 2009


Scone

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It would be nice if it worked that way, but unfortunately TFSAs work the same way as RRSPs with respect to trading commissions and account fees. You can't claim a deduction or any kind of credit for them if they are incurred inside a registered account.

3:18 am
May 8, 2010


silencer

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TorontoExpat said:

I am planning to open a Tax Free Trading Account(TFTA) with Questrade. Which is basically a Tax Free Saving Account(TFSA) rebranded by Questrade. They said that the trading fees for any trading activities will be deducted directly from the balance of the account and that these deduction will not be consider as a withdrawal from the account by CRA. But I wonder if this is the correct interpretation? Logically, I think it should be consider a withdrawal and that I should be able to tally up the total annual trading cost associated with the account and add amount that to my 5k annual contribution ceiling for the following year. Does anybody know the answer to this conundrum?

I tried calling CRA, but as usual, they were clueless. Thank you in advance for your response.

I think it is counted as a "loss" of your investment, not your withdrawal.
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Are trading fees in a TFTA (a rebrandedTFSA) consider a withdrawl?

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