Continuing the discussion on great ways to keep our money out of the hands of our evil, pasta-hating government…a Tax Free Savings Account (or TFSA) is a great way to tax shelter a portion of your savings. It doesn’t give you the same advantages as an RRSP (self-plug alert – please see last week’s blog post!), but it can help you save a few extra bucks.
It works like this: if you get a T3 or T5 form in the mail this time of year (from a bank or investment firm, for example), and you don’t yet have a TFSA, you’re straight-up giving some cash away! The money you’re earning in your investment can be protected from tax by moving it into your TFSA. In other words: TSFA is A-OK! Also, there is literally nothing more exciting than tax-specific word play. There are maximum contribution levels so be careful to follow the rules; ask your friendly neighbourhood Funny Accountant for more info.
Please note – If you arrived at this week’s blog post looking for information on the Task Force for Sustainable Agriculture, they’re a few streets away. Just take a right at Nerdy Avenue and a left on El-Dorko Street. (This from a guy who ends his blog posts like this:)
Live long and prosper (with a TFSA)!
The Funny Accountant.
For more information on this and other tax issues, please contact The Funny Accountant/President of MK & Associates at firstname.lastname@example.org
PS – Next week, I have a big week planned….the topic? “Medical expenses and your taxes: what’s that all about???”
A preview you ask? Chicken soup is not a tax-deductible medical expense even if Dr. Grandma made it.