Which investment is generally not allowed directly inside a TFSA?

Which investment is generally not allowed directly inside a TFSA?

• A. Real estate direct holdings
• B. Stocks
• C. Government bonds
• D. Mutual funds

Answer: (A)

Inside a TFSA, investments must be qualified investments defined by the tax rules, which include cash, stocks, government bonds, and mutual funds (and similar securities or GICs). Direct ownership of real estate is not a qualifying investment, so holding a property outright inside a TFSA isn't allowed. You can still gain real estate exposure indirectly through vehicles like real estate funds or REITs that are qualified investments, but not by owning real estate directly within the account. The other options—stocks, government bonds, and mutual funds—are standard, permitted holdings in a TFSA.

Inside a TFSA, investments must be qualified investments defined by the tax rules, which include cash, stocks, government bonds, and mutual funds (and similar securities or GICs). Direct ownership of real estate is not a qualifying investment, so holding a property outright inside a TFSA isn't allowed. You can still gain real estate exposure indirectly through vehicles like real estate funds or REITs that are qualified investments, but not by owning real estate directly within the account. The other options—stocks, government bonds, and mutual funds—are standard, permitted holdings in a TFSA.