Thanks for the info just need a clarification

Suppose I invest $5000 in TFSA in Jan 2010 and buy stocks with it.

In April 2010 the stocks I bought gained and it makes say $7000.

What if I withdraw $2000 that I gained in April 2010?
Will $2000 be counted in as my contribution withdrawl or capital gain withdrawl?
What will be contribution room for 2011

Yes the fact that TFSA income is not inculded in the income test for OAS is a great advantage for seniors. I actually have another TFSA strategy post coming up with this included. Gordon Pape has also pointed this important feature out in his TFSA Book i’ll have a review and giveaway coming up for that as well

Very informative about the TFSA. Some other interesting issues about TFSA.

There is no need for a spousal version because unlike an RRSP contribution –there is no tax issue.

Any gains earned in a TFSA are tax free forever. Plus the holdings inside a TFSA will NOT cause any claw-backs of government benefits or be subjected to a means test.

Many Canadians hold what, Richard Shillington PHd (http://www.shillington.ca/Financial_Planning/General_Advice.htm) with the C.D. Howe institutes calls “futile RRSPs”.

That is RRSP accounts that hold just enough investment to cause claw-backs of Government benefits. Getting non-inflation indexed income by losing inflation indexed income will put less money in your pocket at retirement.

Tax-free Savings Account do not cause these claw-backs

SPOUSAL TFSA: Unfortunatly no you CAN NOT have a spousal TFSA account, HOWEVER CRA waves attribution rules when it comes to the TFSA so you could gif money to your spouse who can invest it in the TFSA and there wont be any attribution rules to worry about everything is tax free.

This article is very informative, thank you. But I was wondering if the option of having a spousal TFSA accounts is available, like RRSP accounts.