tag:blogger.com,1999:blog-6818486532233792196.post4209689558479385960..comments2024-03-18T14:35:45.389-04:00Comments on The Dividend Girl: Everything you need to know about owning a margin account - Part 2Sunnyhttp://www.blogger.com/profile/10439081666297874311noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6818486532233792196.post-85518680650663322020-05-28T21:43:02.590-04:002020-05-28T21:43:02.590-04:00I don't agree with you of course.
When you do ...I don't agree with you of course.<br />When you do a contribution in kind, the stock that is now in your TFSA grows, and if you decide t sell them, it's free of tax.<br />Also, the dividend earn is free of tax.<br />I didn't explain it, but to maximize the move, always target the stocks that you like and really want to hold for a long time, and also, you need to target stocks who are on less growth. That's why, in my example, I have mostly target stocks that haven't been in my non-registered portfolio for a long time. The stocks that I target are mostly recent investments in my non-registered portfolio.Sunnyhttps://www.blogger.com/profile/10439081666297874311noreply@blogger.comtag:blogger.com,1999:blog-6818486532233792196.post-37757042683528356722020-05-27T18:21:08.915-04:002020-05-27T18:21:08.915-04:00there is no advantage to contributing in kind. It&...there is no advantage to contributing in kind. It's the exact same thing as selling the stock in the margin account and buying it back in the TFSA. That contribution causes a taxable capital gain. Transferring the stock over to the TFSA and then "Injecting" cashback in the margin account to cover the margin makes no sense: If you instead contribute that cash directly to the TFSA directly and bought the stock directly, you wouldn't be paying any taxes for the "in kind" contribution, and therefore you keep more money in your pocket.<br />Anonymousnoreply@blogger.com