If you're a Canadian day trader, then this video is a must-watch! We'll discuss the different taxes that apply to Canadian day traders, and provide you with helpful information to get the most back on your trading taxes and help you save on taxes. We want to make sure you know everything you need to know about trading taxes to avoid any nasty surprises down the road!
Canadian Traders Is your trading income capital gains or business income for? Forget the most important question out of the way here is trading income. Consider 's income. The reason it's very important for you to differentiate the two types of income is because capital gains is taxed way more favorable than business income. Business income is just like employment income is 100 taxable.
Meaning, if you make one hundred thousand dollars from Trading and that is filed as business income, then you have to pay around twenty six thousand dollars in taxes and your take-home income is only around seventy four thousand dollars. However, if you are filing Capital Gains income instead on that same one hundred thousand dollars, that means fifty percent of that profit is tax free. So the true taxable amount is only fifty thousand dollars that equates to paying the CRA Only seventy six hundred dollars in taxes, and you get to keep the remainder of around ninety two thousand dollars.
CRA is very clear on this, day trading is considered a business.
What bs answer is this. You should be very careful when giving an answer like this to your followers because it is not very accurate. Might be truth but not accurate
салом жоним
You didnt really answer the question though. What does the CRA consider it to be?
Sorry day traders but is business income. Long term trading is capital gains.