Avoid day-trading

The Motley Fool website presents an important piece of tax advice for Canadians about TFSA investments: “There is a lesser-known rule that catches many Canadians by surprise. As Fool contributor Adam Othman explains, TFSAs are only for long-term investments. The Canadian Revenue Agency will regularly track how often you trade to make sure you’re not engaged in day-trading.”

“If it notices that you are making several hundred trades every year, your revenue will be treated as enterprise revenue,” Othman warns. “You will be taxed accordingly by the CRA.”

“Avoiding trouble is easy: stick with investments that can build wealth over decades, not days.”

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