TFSA - Pay Commissions Out Of Cash Account?

Discussion in 'Trading' started by Scorbles, Mar 11, 2009.

  1. This is true.

    As far as I know, commissions from trading are considered capital loss. In a normal account they increase your capital loss, and you can use that extra loss for a deduction of other capital gains. But not in a TFSA, because any capital losses are non-deductable, in exchange for the benefit of being non-taxable as well.

    The OP should enjoy the tax-free aspect.
     
    #11     Mar 12, 2009
  2. With most equity trades, the difference between bid and ask is probably double or more what the comission is. I don't know exactly who gets this difference between the bid and the ask, I don't think it's in the broker's interest to let you know that. The broker could probably sell you stocks without charging commission and still make money. However if they charged zero commission, the retail customers would start to question how much each trade is really costing them.
     
    #12     Mar 12, 2009
  3. This is essentially true.

    Referring to the original question, I think the commissions are simply added to the cost base of the shares and you don't have the option of setting it up otherwise. I could be wrong but this is the impression I am under. Please let me know if you find out differently.

    One way around it might be to purchase shares in another investment account then transfer them into the TFSA. CRA will consider this a deemed disposal so you may have a capital gain/loss but the amount should be negligable. Just brainstorming here...
     
    #13     Mar 12, 2009
  4. plugger

    plugger


    Hi Scorbles, I know what you're trying to accomplish by having the commissions taken out of a separate account. It would be great if a person could trade "commission free" within the TFSA so a person could build the account as quickly as possible thereby creating a "tax free" source of income. Boy, what a dream!

    I don't know whether any firm would offer this. My suggestion is to contact each provider to see what type of arrangement could be made. Let me know if you find out something good. Good luck.
     
    #14     Mar 12, 2009