Trading using a foreign member family account

[roca]

Hey guys,

As a Canadian, if I make a family member(who is not Canadian) open a brokerage account and then I trade using that account, and the money stays in their name (nothing gets transferred to me, or I transfer a small amount of the profits and declare income on that), and then have them buy a house/car in their name and use the house/car myself (so that I don't require to transfer a huge amount to my bank account), would that be legal?

 

[FrankInLa]

I don't see why not. What you describe is similar to a friends and family advisor account structure, like the one IB offers. But I am not certain of tax implications if you used the house of someone else, whether family member or not. But you can let someone open an account with their funds which you subsequently trade for them as long as the amount of funds and number of such accounts you trade meet the definition IB sets forth for this account structure. The devil lies in the detail though. IB most certainly would require your family member to prove the source of funds, whether that individual is foreign or not.

Hey guys,

As a Canadian, if I make a family member(who is not Canadian) open a brokerage account and then I trade using that account, and the money stays in their name (nothing gets transferred to me, or I transfer a small amount of the profits and declare income on that), and then have them buy a house/car in their name and use the house/car myself (so that I don't require to transfer a huge amount to my bank account), would that be legal?

 

[Sig]

Hey guys,

As a Canadian, if I make a family member(who is not Canadian) open a brokerage account and then I trade using that account, and the money stays in their name (nothing gets transferred to me, or I transfer a small amount of the profits and declare income on that), and then have them buy a house/car in their name and use the house/car myself (so that I don't require to transfer a huge amount to my bank account), would that be legal?

If you "make" them do something it's probably prima facie not legal!
You're obviously trying to avoid some restriction, although it's unclear even what country you're even in and your obviously not telling us the entire story. Bottom line, no. What you think of as a clever circumventing if the law is neither clever or legal. And if you're not going to tell us the whole story about exactly what laws you're trying to circumvent and why, then stop wasting our time.

 

[FrankInLa]

More details would certainly be welcomed.

If you "make" them do something it's probably prima facie not legal!
You're obviously trying to avoid some restriction, although it's unclear even what country you're even in and your obviously not telling us the entire story. Bottom line, no. What you think of as a clever circumventing if the law is neither clever or legal. And if you're not going to tell us the whole story about exactly what laws you're trying to circumvent and why, then stop wasting our time.

 

[roca]

I am not receiving any funds myself to my account and I am not owning anything. I am managing someone else's money in a way and they buy a house/car with their names on it and let me use it. What's illegal in that?

 

[roca]

I don't see why not. What you describe is similar to a friends and family advisor account structure, like the one IB offers. But I am not certain of tax implications if you used the house of someone else, whether family member or not. But you can let someone open an account with their funds which you subsequently trade for them as long as the amount of funds and number of such accounts you trade meet the definition IB sets forth for this account structure. The devil lies in the detail though. IB most certainly would require your family member to prove the source of funds, whether that individual is foreign or not.

Thanks for the reply. So yes I am managing someone else's money, I am not receiving any funds to my account. With the money I manage for them, they buy a house/car and they let me use it.
Is there anything illegal in that?

 

[Sig]

I am not receiving any funds myself to my account and I am not owning anything. I am managing someone else's money in a way and they buy a house/car with their names on it and let me use it. What's illegal in that?

First off the part of the story you're not telling us. The part about what taxes you're trying to avoid paying or restrictions you're trying to get around that would lead you to this roundabout and inconvenient route that no-one without something to hide or try to get around would or does go through. Again, stop wasting our time if you're not going to tell us the entire story, that's an asshole move.

 

[FrankInLa]

Are you perhaps jumping to conclusions here without any evidence other than a wild hunch? I equally smell some fish here but why not hearing the chap out first...

First off the part of the story you're not telling us. The part about what taxes you're trying to avoid paying or restrictions you're trying to get around that would lead you to this roundabout and inconvenient route that no-one without something to hide or try to get around would or does go through. Again, stop wasting our time if you're not going to tell us the entire story, that's an asshole move.

 

[roca]

If you "make" them do something it's probably prima facie not legal!
You're obviously trying to avoid some restriction, although it's unclear even what country you're even in and your obviously not telling us the entire story. Bottom line, no. What you think of as a clever circumventing if the law is neither clever or legal. And if you're not going to tell us the whole story about exactly what laws you're trying to circumvent and why, then stop wasting our time.

I am not receiving any funds myself to my account and I am not owning anything. I am managing someone else's money in a way and they buy a house/car with their names on it and let me use it. What's illegal in that?

 

[FrankInLa]

Why not telling the whole story first? Why would your relatives not buy that house outright? You do know that taxes are due on profits regardless of whether you manage your relative's fund or they manage it themselves. What's missing in your story?

Thanks for the reply. So yes I am managing someone else's money, I am not receiving any funds to my account. With the money I manage for them, they buy a house/car and they let me use it.
Is there anything illegal in that?