Quote (Bazi @ Jul 12 2021 08:40am)
Pretty much the same however it’s mostly just based on how long you hold the position. You can be day trading and holding long term shares in your same portfolio and the positions that were opened and closed within a year lose the capital gains advantage
Our rules are very vague and you have to rely on precedent sent in tax court at this point. They examine number of transactions per year, average holding durations, type of securities being held (speculative in nature won’t help you) and if it escalates to court or examination they will assess time spent trading. As you can see its quite open to interpretation.
The other rule that really hurts us is CRA trying to limit loss harvesting. You cant sell and re-buy the same security within a 30 day window. If you do the loss can't be used to offset income. Again, this is also open to interpretation. If I sell a S&P 500 index stock ETF at a loss and turn around and buy a US total market, is it buying a similar security. Up to the court, I'd try to argue it isn't but its not time I want to spend dealing with CRA so i still try to be careful.
This post was edited by SBD on Jul 12 2021 09:20am