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Old 01-29-2011, 03:53 PM   #2
DOHCVTEC
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Join Date: Feb 2002
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If you did not buy the initial stock from a TFSA, then the 15K sell would result in a capital gain of 5k, half of which is taxable (so only $2500 gets taxed). What you do with the 15k afterwards has nothing to do with the 5k you made on SELLING the stock. Capital gains tax only applies on realization, i.e. on selling of the stock.

If, however, you did all of this from a TFSA, then you wouldn't be paying any capital gains tax.
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