Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Frank Speaker who wrote (171751)	7/19/2009 1:24:15 PM
From: kidl	Read Replies (1) \| Respond to of 312759

>>>Cap losses deductions are irrelevant when your gains are not taxable and any withdraws from the acct can be replaced dollar for dolar plus your yearly allowable amount of fife grand<<< I don't understand. Please explain. Why would cap losses be irrelevant as they reduce the amount in the TFSA you can play with while additional contributions are limited to $5,000 per year? Example: I put $5,000 into the TFSA. I have no stops and lose $2,500. I add $5,000 next year. Now I have $7,500 to play with next year. Wouldn't it be better to put a, let's say, 20% stop on it? Now I have $9,000 to play with next year. Capital losses reduce your limited available play money within a TFSA which cannot be replaced with unlimited fresh cash.