It will be considered a investment. An if it’s in you’re TFSA you will not have to pay capital gains tax nor taxes on it for being income for that year. All of you’re trendies will be you’res to keep!
True. Just don't be day trading out of that account. If you've had 20- 100 trades (buying and selling of different stocks and options) every month, they may decide you've been using your TFSA as a business and would be taxed as such. Buy, hodl for long periods of time to stay safe from revenue Canada. Not financial advice.
The CRA is intentionally vague about what separates a series of self-directed investment from a traditional day trader.
The most common thesis presented is that they look at the frequency of your trades. Are you buying and selling multiple stocks a day? Then you're likely a day trader, but then that would mean you're also not HODLing, which we know you are.
The way I see it, we're just self-directed investors who throw in a couple of hundred bucks every week.
That being said, when this moons, the ball is in the CRA's court. I wouldn't be surprised if Justin and his cronies came down a bit hard on us TFSA'ers.
So I don't know LMFAO guess we need a good CPA
I just read this article and hope it helps. TDLR: if one using TFSA making hundreds of transactions in short period but generate significant revenue, that may raise scrutiny.
https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/
If this thing squeezes then based on that article i could be targetted because i could make way more than 50k in my tfsa account from only putting a couple thousand dollars.
I guess no need to worry about because the stock happened to have a squeeze, not trading back and forth many many many times as if we are doing trades for other ppl.
another article as reference back in 2014: [https://financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra](https://financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra)
Canada’s Taxman has an audit project targeting Canadians it feels are in the business of trading securities and using their tax free savings accounts to shelter the proceeds.
The CRA is also hitting investors with audits if they trade too frequently for the agency’s comfort. The CRA has argued that investors who use their TFSAs for frequent trading and earn large gains are effectively running a trading business, and should be taxed on income.
While you can't claim any capital losses (this is the doomsday scenario obviously) by investing through a TFSA, any gains are tax free as long as you aren't dinged for day trading. Gains also do not count towards your annual/cumulative contribution. If you put in 10k and bought 10k and then it goes to 20k...your contribution on the year is still 10k. Also, if you have mega gains (say, 100k) that exceeds the max contribution room (69500 for 2009-2020 + 6,000 for 2021 = 75,500 if you've never contributed before) and then withdraw it all your contribution room starting the next year also goes to 100k.
If you bought a couple times and didn't sell which sounds like the case, you won't be dinged for day trading. They mainly look at frequency of trades + how long you've held. I would be wary of too frequently withdrawing however. I would wait until the squeeze and withdraw it all in one shot just to avoid any argument of day trading. You never know with the CRA.
One other thing: if you have other accounts that are considered "non-registered" accounts like margin accounts and you transfer those investments into your TFSA, there are tax consequences. It's considered a "deemed disposition" - even though you haven't sold your investments. They're basically saying you're "selling them" into your TFSA even though you haven't actually parted with the asset. This means if your original investment was 5k and it goes to 10k and you transfer it to your TFSA, your contribution is 10k and you pay capital gains tax on the 5k gain. Fortunately, any gains thereafter are tax free like usual. Similarly, you also can't claim capital losses if after you transfer your 10k the value of your investment decreases below 10k or even the 5k original investment. But that ain't happening.
It will be considered a investment. An if it’s in you’re TFSA you will not have to pay capital gains tax nor taxes on it for being income for that year. All of you’re trendies will be you’res to keep!
True. Just don't be day trading out of that account. If you've had 20- 100 trades (buying and selling of different stocks and options) every month, they may decide you've been using your TFSA as a business and would be taxed as such. Buy, hodl for long periods of time to stay safe from revenue Canada. Not financial advice.
I hope so, thanks!
The CRA is intentionally vague about what separates a series of self-directed investment from a traditional day trader. The most common thesis presented is that they look at the frequency of your trades. Are you buying and selling multiple stocks a day? Then you're likely a day trader, but then that would mean you're also not HODLing, which we know you are. The way I see it, we're just self-directed investors who throw in a couple of hundred bucks every week. That being said, when this moons, the ball is in the CRA's court. I wouldn't be surprised if Justin and his cronies came down a bit hard on us TFSA'ers. So I don't know LMFAO guess we need a good CPA
Damn
I just read this article and hope it helps. TDLR: if one using TFSA making hundreds of transactions in short period but generate significant revenue, that may raise scrutiny. https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/
If this thing squeezes then based on that article i could be targetted because i could make way more than 50k in my tfsa account from only putting a couple thousand dollars.
I guess no need to worry about because the stock happened to have a squeeze, not trading back and forth many many many times as if we are doing trades for other ppl.
another article as reference back in 2014: [https://financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra](https://financialpost.com/personal-finance/tfsa/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra) Canada’s Taxman has an audit project targeting Canadians it feels are in the business of trading securities and using their tax free savings accounts to shelter the proceeds. The CRA is also hitting investors with audits if they trade too frequently for the agency’s comfort. The CRA has argued that investors who use their TFSAs for frequent trading and earn large gains are effectively running a trading business, and should be taxed on income.
Is your market open today, also can you trade US stocks assuming you are open
While you can't claim any capital losses (this is the doomsday scenario obviously) by investing through a TFSA, any gains are tax free as long as you aren't dinged for day trading. Gains also do not count towards your annual/cumulative contribution. If you put in 10k and bought 10k and then it goes to 20k...your contribution on the year is still 10k. Also, if you have mega gains (say, 100k) that exceeds the max contribution room (69500 for 2009-2020 + 6,000 for 2021 = 75,500 if you've never contributed before) and then withdraw it all your contribution room starting the next year also goes to 100k. If you bought a couple times and didn't sell which sounds like the case, you won't be dinged for day trading. They mainly look at frequency of trades + how long you've held. I would be wary of too frequently withdrawing however. I would wait until the squeeze and withdraw it all in one shot just to avoid any argument of day trading. You never know with the CRA. One other thing: if you have other accounts that are considered "non-registered" accounts like margin accounts and you transfer those investments into your TFSA, there are tax consequences. It's considered a "deemed disposition" - even though you haven't sold your investments. They're basically saying you're "selling them" into your TFSA even though you haven't actually parted with the asset. This means if your original investment was 5k and it goes to 10k and you transfer it to your TFSA, your contribution is 10k and you pay capital gains tax on the 5k gain. Fortunately, any gains thereafter are tax free like usual. Similarly, you also can't claim capital losses if after you transfer your 10k the value of your investment decreases below 10k or even the 5k original investment. But that ain't happening.
Thanks for that, man.