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I just have a general question about Canadian Income Tax Rules. In the US the income tax is different for the traders who are catagorized as day traders. Is this the case in Canada and if so at what point are you catagorised as a day trader? Thanks in advance for any replies.
S.
winmaccer
posted Re Tax Canada,, There is no difference as far as daytrading or long holds, profit and gains or loss`s are lumped into one, at the end of year, it all falls into your general anual income statement, the only difference is the rate taxed on securities and general work income , which is just a slightly different rate. Probably the best thing to do is open a self directed retirement saving plan, do all your trades through that account, completely tax sheltered for life. You may make any amount of profit for twenty years and be tax exempt, only when one starts to pull money out of that acct do the feds start to tax. So in a nut shell the SDRRSP is the way to go. All the trading one wants to do, win or lose, as long as the money is never withdrawn from that acct,the profits are in limbo. Of course you can always use losses at anytime against your annual income if you want, and again, they may be acumulated for a later date for a write off against ones regular income. This is what I have been told by one broker, not an accountant, good question, I will re check that info and verify with my accountant as being absolutlely the case.
MacSusan
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Thanks winmaccer for the info. I did not know that about a SDRRSP. I guess my "regular" RRSP won't be seeing another dime- lol. I'll be opening a SDRRSP next.
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