Taxes on a non registered account

Hi there,

I know you guys have made it clear that you are not taxes experts, but I have a doubt regarding capital gains, so I will use an example and maybe you guys have the answer:

1 – I bought 50 shopify stocks (200 each).
2 – I sold all of them in 2020 (1400 each).
THat was my only trade.

Capital gain: 60,000

Technically in that case my taxes wont cover the 50% benefit as I surpassed 30K gains per year. Am I right?
If I am, what if my capital gain was 20K? Then I have the 50% capital gain benefit?
DO you guys know the limit?

ALso, the rule says you can have the benefit if you are not an activate trader.

My 2nd question is: WHat if I am a short-term trader, makes 2 or 3 trades per day and by the end of the year I make 15K in capital gains…CRA will give me the 50% benefit or not?

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Asked on October 27, 2020 2:49 pm

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Private answer

I'm confused by how this is going, but I'll try my best here.

If you bought 50 Shopify stocks for $200 for a total of $10,000 and then sold them for $70,000, you'd have the following taxes:

TFSA: None
RRSP: None
Non-registered account: Taxes dependent on your income on $30,000

I'm not exactly sure of what you mean by capital gain benefit?

In terms of trading, if you trade enough your profits will be taxed as income, and not capital gains. I'm not sure of the actual limits (not a tax expert haha) but I'd say if you're making 1000 trades a year (3 a day) it's going to be treated as income.

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Posted by Dan Kent

Answered on October 27, 2020 3:03 pm

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