Stock trading forum taxes canada

We highly encourage you to update your browser to the latest version of Internet Explorer, or use another browser such as Google Chrome or Mozilla Firefox. Don't have an account yet? Don't have an account?

RedFlagDeals for iOS and Android makes it easy to stay on top of the latest Canadian deals, flyers and freebies from wherever you are! Display posts from previous: All posts Last day Last 7 days Last 2 weeks Last month Last 3 months 6 Months Last year. Sort by Author Post time Ascending Descending.

The Top 6 Canadian Dividend Stocks

Rotate image Save Cancel. Your browser is out of date. Profile Messages Notifications Subscriptions Thread History Settings Log out.

Deals Popular Deals Latest Deals Categories Deals. Flyers Latest Flyers Flyers by store Categories Flyers. Stores Find a Mall Top Stores Top Stores. Search All Forums Show threads Show posts Search in thread titles only. May 25th, 9: Reply to Thread Reply.

Incorporate to trade stocks This is just a feeler type question. You can incorporate for any reason you want however I don't believe it's beneficial to use a corporation to trade stocks I asked my accountant this in the past and I think it was preferable to trade it personally - might have something to do with how capital gains are taxed.

Wouldn't make much sense, for passive income you don't get the tax break that corporation would get for active income. It makes sense to set up a holding company if you have profits in your operating corp, this way you don't withdraw money personally and are not taxed on that, and set up seperate corp liability being one benefit of not having the money in the operating corp.

My opinion is that it depends on how much trading you want to do: If you plan on essentially being a day trader, then yes I would suggest that you incorporate, as my understanding is that given the regularity of trading your corporate income would be active rather than passive and would be eligible for the small business deduction.

If you did not incorporate, you would not claim your trades as capital gains and rather as a business and would be taxed fully.

Incorporate to trade stocks - omenejomy.web.fc2.com Forums

Unless you have 6 full-time employees due to being a " specified investment business ", I wouldn't even consider trying to argue that your 'day-trading' is 'active income'. Tons of case law exists in this area and you'll notice that the tax court does not generally accept income generated from property as being 'active' and qualifying for the CCPC rules and small business deduction.

It therefore makes very little economic sense to use a corporation for investing, primarily since the tax rate is the highest, due to having to pay the "Additional Refundable Tax" ART which is the 6. So, in essence, the tax rate becomes the highest individual marginal tax rate. You can read more about some of the various "active income" tax decisions here.

There is no sense to incorporate for that, no benefits in that and it costs money. Every individual can trade so simply trade and consider it your job. The Supreme Court set out the test for income from property nicely in the Ensite decision. I think reading the exact decision and possibly the headnotes will clarify things a lot better.

The decision can be read here: I agree with what has been said above, but there is one benefit I have heard of that I haven't yet verified. Apparently, a Canadian corporation can receive dividends from another Canadian corporation tax free.

So, for example, if you were invested in dividend paying stocks, you would not pay tax on the dividend. I think unless you had a large volume of dividends coming in though it would not justify the accounting fees associated with a corporation. Has anyone else heard of this?

All posts Last day Last 7 days Last 2 weeks Last month Last 3 months 6 Months Last year Sort by Author Post time Ascending Descending Go Reply to Thread. NCIX Boxing Week Wish List Contest - Contest Closed! Tell Us Your Story - Valentine's Day Contest! Congrats to the Winners! RedFlagDeals Holiday Wish List Giveaway from NCIX.

Advertisers Advertise on RedFlagDeals. Quick links Deals Coupons Financial Flyers Forums Popular Discussion Tags Cashback Our partners Canada All times are UTC