TFSA withdrawl and tax

[oltan]

Let's met setup a scenario: I have TFSA with Questrade ( Canadian Broker)

I max out TSFA contribution by putting in 5k Jan 2009.

June 2009, the 5k balloons due to stock hitting sky high, and turns into 15k. The 10k capital gain is not taxed correct?



If I withdraw 5k and another 5k in Aug and Sept 2009, how does tax works in terms of capital gain?

 

[djboom]

No tax. It's a Tax Free Savings Account. (so are you going to share the ballooning stock with us? )

 

[expert_law]

Hello,
Can anyone help me with this - I received an educational letter from CRA on TFSA over-contribution. As per the letter, I have exceeded the TFSA contribution for 2022 by $9,000. So far, they are not charging penalty for this over-contribution. When I checked my CRA account it showed me that my contribution as of 1 Jan 2023 is only $2,500 (I guess this is due to the fact that a contribution room of $6,500 was added on 1st Jan 2023).

In this scenario, I have 2 questions:
a) What amount do I need to take out from my TFSA ($9,000 or $2,500) ?
b) How much time I have to withdraw the money (received the letter from CRA on 18th June 2023)? The money in TFSA is in form of Non-redeemable GIC and it is set to mature end of July'2023.

Thank you