And the fact that it would take 10 years to use up that over-excess am't in the TFSA. But in your first scenario, nothing matters, as the profits are huge, even with the capital gains on the transfer of shares to the TFSA.

So that's another scenario for people to consider and this applies to myself. Do I want to transfer five thousand shares at say $3.00, to my TFSA, take the capital gain (for my average cost base, this would be about 2.10 profit X 5000 shares, less commissions & interest), or about 10 grand capital gain and a couple of thousand in taxes.

I then reinvest it into my TFSA and back into NOT at a higher SP because it's still goin up and still have to pay the monthly interest on the TFSA for the next two years.

As my average cost base isn't my real profit, I haven't made 10,000. I've only made about $7,000. My capital gains tax would be over $2,000, my monthly interest on the TFSA will be $1,100.00 (5 months X 100.00 and 12 months X 50.00) and it's unknown how much the cost is extra for rebuying the shares.

So I make $3,900, less the difference in SP X 5000 shares and the commsssion of course. Which means I have about 80 cents to play with in SP.

Of course, when I sell out those shares at a higher price, I make the same profit as I would have before I did the transfer, but all of it, would be tax free. And that's where the benefit comes in.

Hope that helps.

strato