Calling all Canadians for info on taxes

N

Nissix

hi!
I know all about the taxes having to do with trading stocks but is there a difference with trading futures?
I exclusively trade the e-mini futures and was wondering what the tax advantages are over trading stocks.
what rates do we pay?
what percentage of our income is taxable?
etc...
any other thoughts on this are welcome
 
Check out the CCRA web site. The long and short of is it that I believe a speculator in futures is able to report all gains and losses as capital or as regular income. I don't think you can change reporting methods once you file your first return so talk with your accountant and give it some serious thought. If you think you'll be in the business for the long haul, I would be inclined to report as capital gains/losses....obviously

http://www.ccra-adrc.gc.ca/E/pub/tp/i356ret/i356re.txt.html

DarynC
 
I am in the same boat as you and the news is not good. Basically, we have to move to another country. I have talked to tax professionals and was told this will NOT be treated as a capital gain because it is short term, therefore it does not get treated at the 50% rate as a normal capital gain would be.

If you are making a lot of moeny in futures (like I am), you have these choices:

1. stay in Canada and pay up to 46% tax

2. move to the USA and pay 28% tax

3. incorporate it as a business, this would reduce the canadian tax bill somewhat

4. move to a country with no capital gains taxes such as Netherlands, Hong Kong, Singapore, Belgium, etc.


Personally, I am seriously thinking of getting dual citizenship to Belgium (by Dad is from there, so its easy for me). The I would live 183 days in Belgium, 182 days in Canada, and be treated as a Belgium citizen and pay 0% tax on trading profits. If not Belgium, then the Netherlands offers only 1.2% tax on capital, as verified by others from that country in this forum.

I am having a meeting mid-July with my tax guy and he will tell me more at that time. Email me back later if you want to know what I found out.
 
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