RE:RE:RE:RE:RE:RE:RE:Who are the real winners? "Instead, choose your TFSA or an unregistered account for your foray into day trading " ... that will definately get you into tax trouble ... we've had this discussion before and my accountant has looked into it , many different reasons can be used to tax your TFSA . If you use it as a way to earn a living , if you daytrade , if you are in the financial field , and many others ... just because the govt isn't cracking down on everyone , doesn't make it legal ... remember that TFSA hasn't been around too long , wait until the gains start to add up , and covid is behind us ,you will see the govts digging into accounts to find the tax dollars ..they are kind of busy looking for the Covid fraudsters right now , and there are many out there ...
Funny story = Last time they showed up at my business ( Like CSI. NY wannabees ) they asked me why my profits were slightly lower than the average , I took out my keys and told the older one " take these and see if you can do better " ... That was not a smart thing to say ... they dug so deep and made me look through mountains of receipts and paperwork ... but still they could not pin anything on me ... they were especially mad that I didn't use a company car for personal use , they love to tax people on that ...I told the younger woman I could show her my " ride" ( sports car ) is she wanted to see it ... needless to say that wasn't very smart either ... they don't like smart axxes especially when they can't tax you on mistakes ...GLTA
clubhouse19 wrote: I don't know about your accountant, in a rrsp, the money does get taxed eventually anyways when it has to be converted. Not any different than if your money in the RRSP was put into some kind of fund whether it be equity or not.
I found this before I answered the above
The bottom line
Yes, you can day trade in your RRSP. But doing so could cause a tidal wave of problems that haunt you for years to come.
Because withdrawals are taxable, your RRSP won’t save you any money if you plan to withdraw before you’re retired. Because contribution room is limited and non-renewable, you can only add so much capital to your account before you start to face expensive penalties. And if you lose money, you might not be able to put it back, leaving you stuck with more expensive options for your retirement savings.
Instead, choose your TFSA or an unregistered account for your foray into day trading so you can have the flexibility you need today, and let your RRSP grow slowly over time so you can have the retirement you want tomorrow.
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the govt left it vague in order to catch the traders and will do so ... don't daytrade in a TFSA or RRSP/ RESP , and short term trades will be considered as taxable income , believe it or not ...I use an accountant who is scared of his own shadow so I'm safe ... I've been audited 3 times and they could do was tax me on the food I consumed ( that I bought at work) at work ...don't mess with the govt , they can get greedy ... GLTA
lb1temporary wrote: It's tax free but not if you use it for an ''enterprise operation''; these programs ( TFSA, RRSP, RESP) are for investment not betting actively. If you are been catched out of the rules, you lost the tax advantages. But like I wrote, they need to prove that you act with a clear pattern of ''frequent trading''
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