One of the major 2008 federal changes affecting individuals is Tax-Free Savings Account.
It was introduced in the 2008 federal budget. Effective January 1, 2009, Canadian who are 18 and older are allowed to save up to $5,000 per year in the TFSA investment vehicle. But not like RRSP, the contributions to TFSA are not deductible for income tax purposes, however the investment income, including capital gains earned will not subject to tax, even when withdrawn.
You can use the saving for any purpose, such as to start a new business, puchase a new car or renovate your house or even take family vacation.
Unused TFSA contribution room can be carried forward to future years.
Contact me, if you need further informatiion about TFSA.
