Re: Tax strategy question for Canadian!
in response to
by
posted on
Oct 25, 2020 05:27PM
I will simply answer that it is wonderful to be able to make a sale at $10.00 and make a profit of 900.00 on which you would pay tax of 25% on the gain or $225.00 after which you would have your original $100 plus $675.00 or $775.00 with which you would buy another 100 at $5.00 or invest $500.00 and if you then sell at $10.00 you have another $125.00 tax to pay.
The whole complexity of 30 days only applies to a "Superfical" loss there is no application of 30 days to profits each sale stands by itself. The only problem that can occur is if you do this a large enough number of times then you may be condered by CRA to be engaged in business as a "Trader" and the capital gain rate does not apply but the whole profits are regular income and taxable at the usual 50%% rate.
If you can time the market to flip in and out more than once making profits each time then you are a genius or lucky. Most of us cannot and tend to hold once we believe there ia a probability of profit.