The second and most applicable to day traders is in regard to business income. With some assets, its pretty clear-cut as to whether they will be treated as income or capital gains.
You can then swiftly refer to your spreadsheet to find the amounts to include on your returns. Unfortunately, that means your dreams of the advantageous 50 capital gains rate may already be over. If youre day trading this should be relatively straightforward.
When it comes to, forex taxation there are a few things to keep in mind, including: Whether you are planning on making. A crucial consideration in forex taxation is the difference between long-term and short-term capital gains, as defined by the IRS. Salary from another job). Whereas capital gain tax is a generous half of your marginal tax rate. In which if you repurchase your property (e.g. However, if thats a large amount then you may find yourself unable to effectively day trade anymore, limiting your ability to generate profit. You can offset your trading losses against the revenue generated from your graphic design business. Further down the page in IT-95R, we have the following bullet. In a 1984 revised bulletin entitled Transactions in Securities, the CRA outlined the factors they will consider in deciding whether your trading activity constitutes business income. I've copy and pasted a couple of relevant excerpts from the 2010 CRA.