Trader tax - US vs Canada

Discussion in 'Taxes and Accounting' started by kcgoogler, Dec 19, 2011.

  1. Say you are a profitable trader making say 100k. How would your taxation be in US vs Canada?

    Also say you have the choice to take either Canadian citizenship or US citizenship; which one would you take?

    PS: It is said in another thread that its better in canada; trying to understand why.
  2. Bob111


    if you are able to figure out the market and pull out 100 K every years, i'm pretty sure you can figure out difference on your own too(assuming that you know how to use search in goog)..

    are you sure that you do have choice? from your post it's feels like you are 100% certain that you can get the citizenship in either country at any time. i wouldn't be so certain about it.
  3. hey dude,

    thanks for the link. But given that you dont know anything about me there was no reason for you to pass condescending remarks. What the hell is wrong with some folks on ET. Whats wrong with having a conversation?

    Ya; sure anyone can learn pretty much anything doing a search on google. Why are you trolling these boards then. Just post that message once and dont ever login again onto ET. Message boards are for people who like to have conversations and ET is a terrific board in that sense.

    Good luck.

    Also as far as whether i do have that choice or not; get your reading comprehension right; i did not say whether i have that choice or not (and its none of your business). I said if someone had a choice what would you choose.

  4. pretentiousness is a unconscious defense mechanism, that is why people respond in that way - fear
  5. Bob111


    fear of what?:confused:
  6. Occam


    The OP's question is actually nontrivial because under the Canadian system (or so I have read), you can end up with your trading gains taxed as income rather than capital gains under certain circumstances (therefore doubling your tax rate); whereas in the US, the short-term capital gains rate is the same as the income tax rate anyway. I would google your question as you'll probably get a more reliable answer from Internet articles by experts than you'll get from anonymous posters here -- ET has its uses, but there are a lot of self-proclaimed experts here who declare absolute confidence in their categorically incorrect answers, especially when it comes to tax issues.
  7. Bob111


    short term capital gains also treated in US as a regular income. and one visit to ER without medical insurance can set you back for life.
  8. the1


    How so true and unfortunate. Have a heart attack w/o insurance and you're into bankruptcy court. The health care system in the US is severly broken and there's a big question whether Obamacare will fix it. Millions will still go without health care because they can't afford it, even with government subsidies. Depending on your income, the government will contribute somewhere in the area of $5k for a family plan that runs about $15k for the average middle class family. Where does the $10k come from? And to boot, you're fined $750 by the IRS for not having coverage. What happens if you can't pay that? A levy against your assets; namely, your home accruing constant interest year after year with additional fines, which also accrue interest year after year. With the passage of time the government will have a levy on your home that could exceed the value of your home. And then if you get sick you end up in bankruptcy court where tax delinquencies are very difficult to get discharged.

    That being said, Obamacare is a step in the right direction but with many flaws. When it fails, and it will fail, a national plan will be put in its place. The US will welcome Canada's version of national Health Care. After all, Obama wanted a single payer system. He may get his wish but probably after he has left office, unless, of course, the 22nd amendment is repealed, which has been introduced in recent years. Welcome King Obama.

  9. Bob111


    if , for whatever reason , OP choose US and planning to trade forever-just don't go with citizenship. stay with green card. at least your obligations will be limited to taxes(assuming you stay in US long enough during the tax year).
  10. JRL


    Yes, trading gains would be considered business income if you're a trader and it's your main course of business.

    Capital gains generally will only be on assets where your INTENT (key word) is to hold them over a long period of time. If you're daytrading, and daytrading is your core source of earnings, you won't get capital gain treatment.
    #10     Dec 21, 2011