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Once we make our gains on cuu from a TFSA, can I use all that profit to put into another stock without being taxed, or does that limit amount apply in that your only allowed $25,000 I believe?
example: I got say 5000 cuu shares in my TFSA then from profits I make say $40,000 (if we get 8/share), can I use that $40,000 to buy another stock without being taxed or will the limit rule apply?''
If it stays in your tax free account you can make as many transactions as you want and you will pay no tax. ie you have 25k$ of CUU, a buyout happens 4 times higher you now have 100k in your tfsa. you then buy 100k $ of bxx and sell it 4 times higher you now have 400k ALL TAX FREE. BUT the deposing limit is 5k per year, no matter how much you take out. ie you now have 400k and take out 100k (on which you will pay zero tax)but you cannot, obviously, put more than 5K in the tfsa the following years... hope thats understandable.
the key is to leave all gains in there and make as much profits as possible, therefore the name tax free saving account.