In 2009, the Federal government established the Tax Free Savings Accounts (TFSAs) for individuals. These accounts allow an individual to deposit $5,000 into them annually and purchase qualified investments in order to earn income free of any taxes. The income could be in the form of interest from something as simple as a GIC, or could come in the form of dividends, trust income allocations, and/or capital gains from investments. The individual could deduct any income earned from their TFSA and not have to pay any income tax on that income.
This is what you need to know about TFSAs:
Investing in a TFSA will provide you the opportunity to earn income on your investment without facing tax implications on its success today or in the future. We all have various savings objectives in life; whether it is to help support our travel and vacation habits, to buy a new car or a home or perhaps it is simply to put money away for a rainy day. Either way, TFSAs afford you the opportunity to save up in order to achieve these goals and to earn passive income while doing so. Most importantly however, is to KEEP those earnings tax-free!
For example, if you invested $5,000 in Skyline Apartment REIT or Skyline Commercial REIT through a TFSA, the current tax deferred characteristics of our investment would now become tax free benefits. ALL distributions that you will receive on your TFSA investment will remain tax-free and any growth in Unit price will not be subject to capital gains taxes at a later point in time.
Saving for your specific goals is important to you and to us at Skyline. We want to see you reach your desired lifestyle and want as much of your hard-earned money to grow and your earnings to stay in your pocket at the end of the day. A TFSA investment with Skyline will provide you with a consistent and attractive income stream to help move you towards your individual savings objectives.
Skyline Apartment REIT or Skyline Commercial REIT is a TFSA eligible investment that is currently only offered to our existing investors as a complimentary investment strategy to their portfolio. Remember, if you did not take advantage of your $5,000 TFSA allowance in 2009, you are able to carry that amount forward and open a $10,000 TFSA in 2010.
If you require any further information about TFSAs and the possible account fees that may be associated with housing this investment through a third party trust company, please contact the Investor Relations department at 1.888.977.7348 (REIT) or via email here.