Day trading capital gains tax canada

Many people assume that gains from trading marketable securities are capital gains, taxed at half the rate that regular income would be taxed at.

Hey day traders: Here are some tax strategies for you - MarketWatch

Whether gains or losses on the trading of securities are capital or income is a question of fact. Administratively, the CRA allows most individuals to treat gains from the sale of securities as capital gains where jurisprudence would say they are regular income.

An election is available in the Tax Act to commit the taxpayer and the CRA to capital treatment. It is not only registered or licensed professionals who are considered traders or dealers in securities.

Taxpayers who are not registered or licensed may be considered to be traders or dealers in securities based on the relevant facts.

Some of the factors to be considered include:. Income treatment is not necessarily a bad result, especially if the trading is performed in a corporation.

Paul Lam | Forex Trading: Income or Capital Gain Tax in Canada?

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trading - capital gains or income? - Financial Wisdom Forum

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