Canadian Traders Tax Discussion Thread

Discussion in 'Taxes and Accounting' started by Helen2, Mar 1, 2008.

  1. Helen2


    You can post your tax questions here.
  2. cold


    what in the world is this ???
    you start a thread
    and then you tell people that this is a thread where they can ask questions
    I have never seen anything like this, Why You Sir Should.........

    ah screw it, why don't I ask the first question

    OK, how can Canadian trader, trading US futures minimize taxes?????
  3. I believe a Canadian trader of US futures could eliminate income tax on trading by moving his domicile, for example, to the Bahamas. Canadians, unlike Americans, only pay tax based on where they are domiciled. Americans pay US income tax (subject to offsetting credit for foreign tax paid) no matter where they live in the world.

    I'm not a tax pro -- consider this is a layman's understanding.
  4. achilles28


    Sure, I've got a question.

    What is the total effective tax rate a successful trader can expect to pay assuming they retain a top notch attorney & accountant, and his tax strategy is 110% legit?

    Lets say Trader A is a speculator (daytrader/short term holder), makes 1 million a year and lives in Canada year round.
  5. achilles28


    Bump for OP.
  6. AAA30


    Personal tax rates in Canada depends on the province you live in.
    All the provinces except alberta have a progressive tax rate.

    This would only apply if you claim your trading as business income which I assume. If you hold positions for longer periods capital gains are only 50% taxable for both provincial and federal taxes.

    There are ways you can reduce or defer taxes but it depends on your personal situation. If you need tax advise you will need to seek out a tax accountant who is knowlegable about claiming trading income. If you told most that you trade futures they would assume you lost money.

    The total effective tax rate for BC on $1 million would be 42.11% and then you need to try to find deductions or ways to defer tax from there.
  7. MelissaM


    I want to trade the US futures using my RRSP funds, is anyone doing that? if so which broker are you using? Thanks for any reponse.
  8. jazzsax


    Quest is supposed to be getting futures trading sometime this year. Not sure about the rest.
  9. You make the basic assumption that Revenue Canada is completely unsophisticated...
    And that simple tricks will allow you to avoid taxation.

    You are obviously not a "tax pro".
  10. Is that you, Helen2?
    #10     Mar 27, 2008