OK, follow closely and tell me if I'm correct.
So, if I put $50,000 worth of NOT in my TFSA, (approx 20,000 shares) even though I've already contributed my $5000 for the year and NOT goes to say $20.00, giving me $400,000 ($350,000) profit on the overcontribution in 12 months I will pay $6000 (1% or $500 per month on the overcontribution x 12 months) instead of roughly $75,000 (43% of 50%) in taxes?
Or more likely, I contribute said 20,000 shares ($50,000) and NOT doubles to $5.oo in one month. I then withdraw the $100,000 ($50,000 profit) and pay $500 instead of $10,000 in taxes?
But the catch is I don't have $50,000 hanging around and if I were to transfer shares from my investment account I would have to pay capital gains on that transaction. So is it worth it then?
Confusing, I know.