Lets talk about stocks

[QuebecPride]

Le marché des PAPE est en feu

 

[canucklover123]

What do you mean by that? The whole idea of investing is to make a gain.

Right, so say you’re making trading let’s say 30 times a month, CRA might not care if you’re making a couple hundred bucks. But say you were in on GME and made a 100,000 off GME in your TFSA, you can expect them to come after you for taxes in your TFSA

 

[canucklover123]

If you day-trade in a TFSA you might have to declare taxes, but most of us don't so it is effectively tax-free.

Right, so what I was saying is it’s still a grey zone what qualifies for “day trading” in a tfsa, we don’t really have set guidelines established by the CRA. But yes, most do trades in their tfsa and will go away Scott free.

 

[canucklover123]

If you are day trading spec assets in your TFSA and you build up a large balance CRA will come for you. FWIW I think that is BS, but this government is starved for revenue and they are going to aggressively find tax dollars wherever they can to pay for all this spending. Someone has to pay for all the CERB and bailouts.

All that said, the worse they can do is assess cap gains, which you would pay on an unregistered account anyways, so not a lot of risk. Pay now or maybe pay later.

actually, the worst they can do is assess your investment income as business income and tax you on your marginal rate similar to how the IRS taxes short term investments.

but yaa lol, I have to let the clients know what can happen but seems like the play is to just test your luck and pay later if it ever comes down to it lol

 

[canucklover123]

factors the CRA uses to determine an investment business. They include: volume of trading, the length of ownership of securities, the taxpayer's knowledge of the stock market, the taxpayer's profession, the time spent on researching and trading securities, and whether the taxpayer markets his or her ability to trade securities.

yup this is it, so grey in the description because it doesn’t tell you how many trades definitely or the length of investment. Just factors so they definitely leave it like that on purposes

 

[Ozmodiar]

Right, so say you’re making trading let’s say 30 times a month, CRA might not care if you’re making a couple hundred bucks. But say you were in on GME and made a 100,000 off GME in your TFSA, you can expect them to come after you for taxes in your TFSA

Yeah, I think the gain is the flag.