Income and gains on TFSA overcontributions can remain in account, CRA says
There are exceptions for cases of deliberate overcontributions or penalty waivers
Canadians may keep income or gains earned from overcontributions to their TFSAs as long the overcontribution was not deliberate and they pay the 1% monthly penalty tax on the excess contribution, the Canada Revenue Agency (CRA) confirmed in a recent technical interpretation.
Original Article Source Credits: Advisor’s Edge, https://www.advisor.ca
Article Written By: Rudy Mezzetta
Original Article Posted on: November 2, 2020
Link to Original Article: https://www.advisor.ca/tax/tax-news/income-and-gains-on-tfsa-overcontributions-can-remain-in-account-cra-says