Quote:
The TFSA and capital gains. Capital gains are likewise taxed more favourably than interest income in normal circumstances outside of registered plans and the TFSA. Only half of your capital gains, net of any losses, are taxable.
Capital gains also provide an opportunity for tax deferral because the gains are only taxable when the gain is “realized,” generally through the sale or transfer of the asset. You will not pay any taxes on the “unrealized” gains for as long as you continue to hold the investment.
From a TFSA perspective, the majority of capital gains potential will generally come from equities, although you may also realize some capital gains on bonds and mutual funds under certain circumstances.
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Can anyone explain the bolded line?
If I use $10k to make $100k in 5 years and withdraw them afterwards, are those considered "realized"?