Latest news with #TFSA
CBC
6 days ago
- Business
- CBC
TFSA contribution limit info has been unavailable since mid-April, CRA confirms
For more than a month Canadians looking to see how much contribution room is remaining in their tax-free savings accounts (TFSA) on the Canada Revenue Agency (CRA) website have been out of luck. In an email to CBC News, CRA spokesperson Nina Ioussoupova confirmed that information has been unavailable since mid-April. "There have been delays in processing TFSA annual information returns this year," Ioussoupova said in the email. "To avoid displaying erroneous information on My Account, the display of TFSA information, including TFSA contribution room, has been blocked since April 17, 2025." The tax-free savings accounts were introduced by Prime Minister Stephen Harper's government in 2009. Each year, Canadians who are at least 18 years old receive an increase to the amount of money they can invest. In 2025, for example, the additional contribution limit is $7,000. If someone was 18 in 2009, has lived in Canada since then and never contributed to their TFSA, their total contribution limit would be $102,000 as of Jan. 1, 2025. But if a person contributes every year, but doesn't reach the limit, it can be more difficult to calculate. Withdrawals are also added to a person's contribution limit the following year. Ioussoupova said in her email that the CRA is working to update TFSA contribution information "as quickly as possible." She added that to "avoid over-contributing, review the records provided by your issuer." Ioussoupova said taxpayers can fill out what's called a RC343 Worksheet to estimate their TFSA contribution room for the year. Philip Spagnolo, a senior accountant with Jakubo Chartered Professional Accountants in Sudbury, said it's important people are aware of the TFSA contribution room before they invest funds. "There's a one per cent interest that's charged on the amount that you over contribute. So you want to be aware of that so you don't run into that problem," he said. Spagnolo said it's possible to file an appeal with the CRA if someone is charged interest for over-contributing to their TFSA, but there's no guarantee they would be successful.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Canadians still can't access information about TFSA accounts in latest CRA website glitch
After a tax season marred by technical troubles, Canadians still can't access information about their tax-free savings accounts (TFSAs) through the Canada Revenue Agency's web portals. Online advisories currently warn both taxpayers accessing their individual online accounts and tax professionals logging in on behalf of their clients that details about their TFSAs, including contribution limits, remain unavailable. The CRA said the issue is related to delays in processing the TFSA returns that financial institutions submit annually. To avoid displaying incorrect information on its portals, the agency has blocked its TFSA dashboards since April 17, spokesperson Nina Ioussoupova said via e-mail. 'We are currently working to update TFSA information in My Account as soon as possible. We regret the inconvenience and thank taxpayers for their patience,' she said. The CRA has not responded to a question sent Wednesday evening about about what caused the processing delays. The unavailability of TFSA information from the CRA can make it harder for Canadians to calculate how much they can add to their TFSA this year without risk of overcontributing, which triggers a steep penalty. Some tax experts said the TFSA glitch is another technical woe that risks further undermining public confidence in the reliability of the CRA's website. A systems update earlier this year resulted in many Canadians not seeing some of their tax slips from their CRA accounts, while some reported seeing duplicate tax slips and receiving incorrect error codes when trying to submit their tax returns electronically. The CRA's site currently carries an advisory warning taxpayers that not all their slips may be displayed on their online accounts or be included if they use the auto-fill feature to populate their returns. Where are your tax slips? Why so much information is missing from CRA accounts this year You've been flagged for a CRA audit. Here's what happens next The lack of information about TFSAs on CRA portals is only a minor nuisance for Canadians who regularly add the maximum amount or those who know they have lots of contribution room and have no plans to make big deposits, said Aravind Sithamparapillai, a financial planner at Ironwood Wealth Management Group. But the issue is likely to be a headache for those who need to verify they have enough room for a one-off large contribution, he added. Mr. Sithamparapillai often gets questions about available contribution room from clients who have received a bonus or inheritance or those who want to ramp up their savings after graduating from university or coming off parental leave. The maximum amount Canadians can contribute to their TFSAs depends on an annual dollar limit determined by the government every year, as well as on past deposits and withdrawals. Adding more than what's allowed to the account attracts a penalty of 1 per cent of the excess contribution per month. The CRA website typically reports taxpayers' available contribution room. Mr. Sithamparapillai cautions that the tax agency's TFSA information isn't always up to date and can be incomplete. For example, account activity from the previous calendar year typically doesn't show in CRA portals until March or April, after the agency has received the information from account issuers and processed it. And the CRA's estimate may not account for years in which a taxpayer lived abroad, during which no additional contribution room accrues, he added. Mr. Sithamparapillai keeps track of each client's contributions and withdrawals to be able to provide reliable, up-to-date information on contribution room. But the CRA's TFSA dashboard allows taxpayers and their advisers to check their own information and calculations. And the tax agency's tally is an essential starting point when Mr. Sithamparapillai must calculate the contribution room for new clients. Attempting to do so without referencing the CRA information would require piecing together the individual's history of activity in the account based on their account statements. It's an exercise that can be both labour-intensive and risky because of the chance of missing some information, he said. In general, the TFSA hitch adds to concerns about the CRA's website at a time when the agency is pushing to move more of its interaction with taxpayers online, said Joseph Devaney, a director at the financial education platform Video Tax News. 'We have yet another demonstration of glitches in CRA's system at a point in time when they are trying to force all businesses to use an online-only method of communication with them,' Mr. Devaney said.
Yahoo
24-05-2025
- Business
- Yahoo
How I'd Transform $7,000 Into a Reliable Stream of Passive Income
Written by Tony Dong, MSc, CETF® at The Motley Fool Canada Lend me $7,000 and I'll pay you back $42 a month, forever. And if we're lucky, that original $7,000 might even grow over time. Sounds like a scam, right? But it's not. It's actually something that's very achievable inside a Tax-Free Savings Account (TFSA) if you pick the right investment. One fund that fits the bill is the Canoe EIT Income Fund (). Here's why it could be a strong candidate for turning a lump sum into steady, tax-free monthly income. is a closed-end fund (CEF) that gives you access to a professionally managed portfolio of about 50% U.S. and 50% Canadian stocks. It doesn't follow a benchmark index. Instead, managers actively pick companies with the goal of generating consistent income and capital appreciation. Like many CEFs, trades on the exchange, which means its share price can differ from its net asset value (NAV). When it's priced above NAV, it trades at a premium; when it's below, it trades at a discount. This difference can offer opportunity depending on when you buy. also uses light leverage of around 1.2 times to enhance both yield and returns. That means for every $100 of investor capital, the fund controls about $120 worth of investments. This modest borrowing boosts income but also amplifies volatility, so it's important to understand it's not risk-free. Despite that, its long-term track record is solid. Over the last 10 years, if you reinvested all monthly distributions, you would have earned a 10.9% annualized return, an impressive result for an income-focused fund. First, with $7,000 in your TFSA, and trading at $16.43 per share, you could buy approximately: $7,000 ÷ $16.43 ≈ 426 shares. Each share pays a $0.10 monthly distribution, which has remained steady for more than a decade. That means every month, you'd earn: 426 × $0.10 = $42.60. Because the TFSA is tax-free, you keep every penny – no income tax, no withholding tax, no paperwork. That's $511.20 per year in passive income. And if you choose to reinvest those distributions, you'll slowly build more shares, which in turn generate more income each month, kicking off a powerful compounding effect over time. The post How I'd Transform $7,000 Into a Reliable Stream of Passive Income appeared first on The Motley Fool Canada. Before you buy stock in Canoe Eit Income Fund, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canoe Eit Income Fund wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube 2025
Yahoo
14-05-2025
- Business
- Yahoo
How I'd Use $10,000 to Transform My TFSA Into a Cash-Pumping Portfolio
Written by Amy Legate-Wolfe at The Motley Fool Canada Turning a Tax-Free Savings Account (TFSA) into a reliable income stream doesn't have to involve complex strategies or risky picks. Sometimes, it just takes a solid stock, a smart investment, and a bit of patience. If I had $10,000 to put to work in my TFSA right now, Chorus Aviation (TSX:CHR) would be high on my list. It's not a flashy tech stock, but it's got everything you want when aiming to generate consistent, long-term cash flow, growth potential, improving earnings, and a management team that knows how to reward shareholders. Chorus Aviation is based in Halifax and operates several businesses that support regional aviation. Its best-known subsidiary is Jazz Aviation, which flies regional routes under the Air Canada Express brand. Chorus also owns Voyageur Aviation, which offers aircraft maintenance and special mission solutions. This means Chorus doesn't just make money by flying passengers. It earns revenue from maintenance contracts, parts support, and fleet services. It's a business model built around aviation resilience, not just ticket sales. The company's first-quarter 2025 results prove just how well it's executing that strategy. Chorus reported a net income of $18.9 million, which is a huge jump from the $12.3 million it posted in the same quarter last year. More importantly for investors, the adjusted earnings available to common shareholders rose to $15.4 million, or $0.57 per share, compared to just $0.13 per share a year ago. That's the kind of earnings growth that shows the business is not just recovering; it's hitting a new gear. Chorus also delivered strong adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $56.9 million for the quarter, up from $54 million in the same period last year. EBITDA might not be the flashiest number in finance, but it tells you how much money a company is making from its actual operations before taxes, interest, and other stuff that can skew the picture. This steady growth shows Chorus has a healthy and stable core business. What really makes Chorus attractive for a TFSA, though, is the free cash flow. In the first quarter (Q1) of 2025, the company generated $40.6 million in free cash flow, up from $30.7 million the year before. This is the money left over after capital expenses, and it's the pool of cash Chorus can use to pay down debt, buy back shares, or reward investors in other ways. In today's market, a company generating this much excess cash deserves a second look. And Chorus isn't just sitting on that money; it's putting it to work. In April 2025, the company launched a $25 million substantial issuer bid, essentially offering to buy back a chunk of its own stock. On top of that, since 2022, it has repurchased $53 million in shares through its normal course issuer bid program. That's a clear signal from management that they believe the stock is undervalued and that it's committed to delivering value to shareholders. For investors using a TFSA, this can be a powerful way to boost long-term returns without worrying about capital gains tax. Chorus also has a strong balance sheet, with a market cap of about $505 million. Its stock has a fair bit of room to run if investor sentiment improves to reach 52-week highs. As travel rebounds and aviation services remain in demand, Chorus could see more tailwinds pushing it forward. For TFSA investors who want a cash-generating machine that doesn't rely on hype, Chorus is worth serious consideration. It's generating strong earnings, increasing free cash flow, and actively buying back shares to return value. That's the kind of stock you can hold through market cycles and let your tax-free gains compound over time. Putting $10,000 into Chorus in your TFSA might not make headlines, but it could quietly deliver some very rewarding returns. When you're building wealth for the long term, being boring and dependable is often the best kind of exciting. The post How I'd Use $10,000 to Transform My TFSA Into a Cash-Pumping Portfolio appeared first on The Motley Fool Canada. Before you buy stock in Chorus Aviation Inc., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Chorus Aviation Inc. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
14-05-2025
- Business
- Yahoo
I'd Bet My Entire TFSA on This 3.5% Monthly Dividend Stock
Written by Christopher Liew, CFA at The Motley Fool Canada Saving and investing without breaking a sweat is possible through the Tax-Free Savings Account (TFSA). Regular contributions to the one-of-a-kind investment tool can also turn into a massive sum over time. Based on the most recent BMO Investment Survey, Canadians set a new record for the average amount in 2024. TFSA values rose to an all-time high of $44,987 last year. Around 63% of poll respondents worry about a potential recession and have taken action to strengthen their financial positions. For accountholders who have yet to use their 2025 TFSA limits, an established real estate investment trust (REIT) is a good option. Chartwell Retirement Residences (TSX: pays a decent 3.5% dividend and the payout frequency is monthly. You can bet your entire TSFA on this monthly dividend stock owing to the favourable demographic trends and ever-increasing demand in the space. At $18.27 per share, the REIT enjoys a 22.7%-plus market-beating return compared to the TSX's 2.6%-plus year-to-date gain. According to its CEO, Vlad Volodarski, the continued investments in the management platform along with portfolio optimization have positioned Chartwell to capitalize on the unprecedented market dynamics. Besides the accelerating demand in senior housing, new supply remains limited or constrained. The $5.1 billion REIT is one of Canada's largest operators in the senior living sector. It boasts a national presence in key markets. Chartwell focuses on the upscale and mid-market segments and fully owns most of the high-quality properties. Management expects the market imbalance to drive higher occupancy and rent growth. In Q1 2025, total revenue increased 28.7% year-over-year to $252.9 million, while net income reached $33.2 million compared to the $2 million net loss in Q1 2024. The weighted average same property occupancy rose to 91.5% from 86.2% a year ago. Chartwell's primary source of liquidity is net operating income (NOI). During the same quarter, NOI rose 50% year-over-year to $93.5 million. Regarding debt, the REIT has access to low-cost mortgage financing insured by the Canada Mortgage and Housing Corporation (CMHC). Management intends to continue financing the properties through the national housing agency's program. 'We are committed to building on this momentum by further growing occupancy and cash flows, said Volodarski. 'We now project reaching 92.2% occupancy by June 2025, progressing toward our year-end target of 95%.' Jonathan Boulakia, Chartwell's chief investment officer, sees great tailwinds for the business. He told RENX, 'Our occupancies at our existing properties have increased significantly over the last couple of years, and there's a great sense of optimism for the industry generally and for our company specifically for the future, so we think this is a good opportunity to be acquiring newer assets.' Boulakia also notes that the 75-year-old plus Canadian population segment is growing faster than the general population. He added that the supply and demand equation is helping Chartwell. Chartwell Retirement Residences is not only for income-focused TFSA users but generally for long-term investors. The current seniors housing demand is projected to double over the next 20 years. Moreover, the plan to continue its prodigious expansion program should boost the stock further. Lastly, has paid monthly dividends since March 2016. The post I'd Bet My Entire TFSA on This 3.5% Monthly Dividend Stock appeared first on The Motley Fool Canada. Before you buy stock in Chartwell Retirement Residences, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Chartwell Retirement Residences wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
