Day Trading Taxes in Canada | Day Trading in TFSA Account?

🔽Time stamps:
2:32 Is day trading income business income or capital gains?
3:50 CRA definition of day trading
8:46 Pros & Cons to filing as capital gains vs business income
12:49 Day trading in TFSA

How to file day trading taxes in Canada? Is day trading in TFSA account allowed? Is day trading income considered capital gains or business or self employment income?
While capital gains are 50% taxable, self employment & business income are 100% taxable.

But you must file your trading income according to CRA rules and definitions:
1. How often do you trade?
2. How long you hold the trading positions for?
3. How much time you spend on trading and market research?
4. How substantial is the trading income?

Day trading in TFSA account. Is that allowed?
The short answer is NO. If your trading activity is considered business income according to the 4 definitions above. Tax free savings account is meant for long term savings and investing.
Some casual swing trading with options or stocks are allowed in TFSA. But talk to a tax professional first regarding your own situation.

The Canadian Revenue Agency will have access to all your trading transactions on form T5008. Please make sure to consult a CPA regarding your day trading taxes.

Resources referenced on Day Trading Tax Canada:
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[PhantasticAum]

Super useful video for all Canadian fellows who trade daily as a self employed business. Love the facts that we can use tax write offs such as mortgage interest(not the mortage monthly payment) property tax, property insurance, utilities(water, gas, power, sewer, garbage), internet, cell phone. platform monthly fee, commissions, borrow fees and computers equipments. Just measure your total SQ.FT of your working space and divided by your home's total square footage. Dont forget to attach all the trade statements to CRA. LET THEM see each of our trade records(such a fun job they do hey..lol)

[calvint]

"Paying taxes mean making money...." oh man, I love this mindset!

[DW-eesv]

You're a rockstar! Excellent video and explanation. Laughed out loud multiple times. Very cool to see a fellow BC'er putting good content out there for Canadians taking their financial well-being into their own hands. Information like this is what really helps a lot of people climb out of paycheque to paycheque. Keep it up!

[JoshuaWillis]

Please don't stop with the dry humor. I love it!

[ahome]

Very good video. There are no tax slips generated for TFSAs, so the CRA cannot easily challenge your day-trading activities in your TFSA unless they launch an investigation.

[hammer]

appreciate your video, just move back to Canada from the USA and been trading for 5 years in the USA ...so very different in Canada.

[iamteptep]

The only channel I watch without skipping so far.

[mapleleafs]

The best 15 minutes of my time learning something new.

[loganbaumann]

Your humour is way different from what im use to seeing i love it keep it up fellow Canadian.

[JJ-xduo]

I love your content. It's very informative. Great sense of humor.
I really appreciate your help.

[EMADESSAD]

You would make an teacher. I wish I had teacher like you. I would've have been a rocket scientist. You make things sound so interesting .

[hockeydad]

That was the longest disclaimer AND the most entertaining disclaimer i have ever seen. 👍 love your sense of humor and your insight.

[RynX-Music]

I love your content and have learned so much! Thank you so much for this content! From one Canadian to another!

[austinconboy]

First Canadian trader channel ive seen, subscribed.

[samiraaslamzada]

They dry humor was sooo good i HAD to subscribe

[paulinmontreal]

Your video was so great, you should go live on tour!! Not joking.
I live in Montreal and miss being able to be a proud Canadian. Most Canadians left a long time ago.
Keep up the good work and I am now a new subscribers.

[jodfayre]

I started my day trading and this video helped me a lot 😍time to go to CRA and correct my mistake 😭 thank you much. Liked and subscribed ☺️ Asian guy here 😂

[johnwayne]

I love this girl! She is funny and smart.

[jassilavkainen]

Your video came in handy when I only began trading (swing trade) since early December 2020!

[dondemque]

Overall the video was very well done. Unfortunately in Canada you have to pay an accountant to get this kind of information because CRA will not provide it. In fact a lot of the rules on this topic CRA makes up on the spot and for the most part is administered very unevenly. For example when/if you ask them how many trades you have to do before they consider it income than capital gains they will not answer. They refuse because there is no actual number. Many of the rules around this subject actually go against the rules on Capital gains taxes in the first place. Often CRA to build a case will fabricate information to try to make it look like the tax payer is doing something wrong when in fact they are not. Instead of reference actual tax law they reference information bulletins (sad). It will not be long before you will have to pay tax on selling your primary home so get ready. They have already started collecting information on this. CRA is improperly and probably illegally over taxing Canadians.

One of the main reasons why individual traders should not be charged income on their "day trading" activity is because business who do this for clients (who are making 100s of trades per day everyday) are allowed to have their clients only be charged for capital gains taxes. Therefore they are given a privilege that everyone should have access to. CRA decision on this is not democratic and is a violation of your rights to be treated equally. Everyday our government is making the playing field unequal where the rich get more rights than the majority middle class who are stuck paying higher taxes.