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Looking towards 2023 TFSA contribution room
June 26, 2022
9:21 am
Norman1
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The difference between the CRA indexation and the annual CPI inflation is not material.

Income Tax Act indexation is for October-to-September years. The annual CPI inflation numbers are for calendar January-to-December years.

June 26, 2022
9:43 am
Lapsusone
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Let's not forget that next year is allegedly the start of the new FHSA, which will give you an additional $8k tax free room for savings. Even if you're not buying a home, you can transfer the money out to your RRSP after 15 years (without counting against your RRSP limit).

It's not clear yet if current home owners can open an account and take advantage of the 15 years tax free.

November 10, 2022
6:50 am
hwyc
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Nope, not eligible. Just TFSA contribution in 2023sf-confused

To open an FHSA, an individual must be a resident of Canada and at least 18 years of age. In addition, an individual must be a first-time home buyer, meaning that they have not owned a home in which they lived at any time during the part of the calendar year before the account is opened or at any time in the preceding four calendar years.

November 13, 2022
1:08 pm
hwyc
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2023 annual TFSA dollar limit $6500 is posted on this Canada.CA site here Many other sources already crystal balling the number long before.

November 13, 2022
1:54 pm
cgouimet
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hwyc said
2023 annual TFSA dollar limit $6500 is posted on this Canada.CA site here Many other sources already crystal balling the number long before.  

An easy calculation once the October CPI is known ...

CGO
November 13, 2022
2:17 pm
hwyc
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cgouimet said

An easy calculation once the October CPI is known ...  

... October CPI remains an unknown to me until next Wednesday, Nov 16th
... I am too old for that kind of calculation ... instead I'll try to keep up & follow other people's … #2 poster in the thread sf-wink

November 13, 2022
3:28 pm
Norman1
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Don't need the October 2022 CPI for this year.

The Income Tax Act indexation is based on the CPI for twelve months ending September of each year, not ending October of each year.

What is needed has been published by Statistics Canada:

143.9 October 2021
144.2 November 2021
144.0 December 2021
145.3 January 2022
146.8 February 2022
148.9 March 2022
149.8 April 2022
151.9 May 2022
152.9 June 2022
153.1 July 2022
152.6 August 2022
152.7 September 2022
148.842 Average

The previous October-September twelve-month period had CPI of 139.983.

Indexation is then

148.842 / 139.983 - 1 = 0.06329 = 6.3%

November 13, 2022
3:55 pm
Bill
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I believe that takes the adjusted limit to $6551 ($6163 X 1.063) so only need about 3% CPI increase for Oct/22 - Sept/23 period to make 2024 TFSA limit be $7000.

November 13, 2022
4:20 pm
cgouimet
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Norman1 said
Don't need the October 2022 CPI for this year.

The Income Tax Act indexation is based on the CPI for twelve months ending September of each year, not ending October of each year.

What is needed has been published by Statistics Canada:

143.9 October 2021
144.2 November 2021
144.0 December 2021
145.3 January 2022
146.8 February 2022
148.9 March 2022
149.8 April 2022
151.9 May 2022
152.9 June 2022
153.1 July 2022
152.6 August 2022
152.7 September 2022
148.842 Average

The previous October-September twelve-month period had CPI of 139.983.

Indexation is then

148.842 / 139.983 - 1 = 0.06329 = 6.3%  

Sorry. Yes September published in October ...

CGO
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