Canadian Traders Tax Discussion Thread
- Thread starter Helen2
- Start date
WTF
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?????
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?????
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.
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.
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.
Bump for OP.
Personal tax rates in Canada depends on the province you live in.
All the provinces except alberta have a progressive tax rate.
http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html
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.