Subject to certain restrictions, your TFSA can invest in shares of private companies. The company must meet the definition of a “specified small business corporation”. This means that, in general, the company must be a Canadian controlled private corporation that carries on an active business in Canada.
Prohibited Investments
Prohibited investments for a TFSA include:
• loans to the TFSA holder
• shares or debt of “non-arms length” entities,
meaning any company in which you, your spouse and any other related persons, either individually or collectively own 10% or more of the shares.
Prohibited Investments
Prohibited investments for a TFSA include:
• loans to the TFSA holder
• shares or debt of “non-arms length” entities,
meaning any company in which you, your spouse and any other related persons, either individually or collectively own 10% or more of the shares.