CRA Passive Income: How to Turn Your TFSA Into Tax-Free Cash Flow
Many Canadians allocate some of the contribution room in their Tax-Free Savings Account (TFSA) to store emergency funds for a rainy day. The account’s flexibility and tax-free status make it an ideal vehicle to store emergency funds. However, using the contribution room for high-return investments can make it a more useful investment tool to meet your financial needs.
You can always put the emergency funds in a non-registered account and use the TFSA to generate tax-free passive income. Investing in the right income-generating assets through your TFSA can entitle you to substantial income that the Canada Revenue Agency (CRA) cannot tax.
Original Article Source Credits: The Motley Fool , https://www.fool.ca/
Article Written By: Adam Othman
Original Article Posted on: February 22, 2021
Link to Original Article: https://www.fool.ca/2021/02/22/cra-passive-income-how-to-turn-your-tfsa-into-tax-free-cash-flow/