Personal Finance

Are private shares TFSA eligible?

  • Last Updated:
  • Mar 12th, 2013 10:05 pm
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Newbie
Aug 26, 2012
61 posts
19 upvotes
Edmonton

Are private shares TFSA eligible?

My sister has a chance to buy shares in a family owned company. They are not publically traded and are only available to family members. Are these TFSA eligible or must they be publically traded to be eligible.
3 replies
Deal Guru
User avatar
Nov 18, 2005
11955 posts
3699 upvotes
Kingston
Technically yes. But I couldn't find any TFSA sponsor who could put them in a TFSA. Their record keeping systems are only designed to handle public shares.

So it is technically possible but practically not possible.
Deal Fanatic
Aug 21, 2007
6054 posts
853 upvotes
Markham
if you can find an institution to do a private placement, cannot own more than 10% of the company for the shares to be eligible

so if its family owned, and your sister is a family member, she cnanot buy up more than 10%

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