Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, opgions income and capital gains) is generally tax-free, even when it is withdrawn. While a put option gives you the right (not the obligation) to sell stock at a specific price, selling the same option brings the obligation to report the transaction to the Internal Revenue Service, and calculate taxes on the profits you earn, if any.
Put option prices move in reverse to the stock price: if the stock moves down, the put becomes more valuable. See the rules for TFSA limits and contributing to your TFSA. When done right, the withdrawals are subject to a lower income tax rate than would have been payable on the initial conLinkedInSometimes, the TFSA is misunderstood. One common misunderstanding is how many people think the Tax Free Savings Account (TFSA) is just a savings account.
If the TFSA was called the Tax Free Investment Account (TFIA), would people then mistake it for just deatn savings account with no tax. You can choose from a wide range of investment options.
Death tfsa in options put