HPQ Silicon Inc V.HPQ

Quick question

[Moneycat]

So I just learnt that if you trade quite a bit in your TFSA CRA may consider it as taxable income.  Apparently the TFSA is suppose to be for longer term holdings.  So people flipping in and out of stocks in their TFSA may run in to issues.  Has anyone had an issue like this happen to them ??

[2020oilgamble]

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[Moneycat]

Thank you.   There goes that idea .  

[2020oilgamble]

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[madeinhemlo]

No I haven't.  Here's the way I understand it.  The TFSA was created as a tax free savings account.  All gains whetherer cap gains, div. or interest are tax free.  If I choose to use the account for rapid or excessive trading I am deemed to no longer considered a saver.  Now I am a stock trader.  But RevCan still doesn't know.  It's only when the

[gizmo66]

I've done alot of research on this and my understanding and my brokers is you can invest in your TSFA and if you hit it big like I have with both HPQ and PYR  it is fine, but and this is a big one if you have a bunch of activity buying and selling the same stock they consider you a bussiness and will come after you. So one or two trades is not going to raise any red flags they cant go

[Snowdrift]

My broker (owned by one of the major banks) tells me they do NOT send our TFSA activity to the CRA.  He says the CRA makes random investigations.  And maybe, like someone said in an earlier post, they check any TFSA that has more than $750 K +. But I asked him what happens if a person does NOT do a lot of trading, but is lucky enough to have invested $30K in a stock that has grown to

[flybyyou]

This is also what my financial adviser told me.  The CRA is looking for day trading and if the number of shares drastically influences the share price.  Minipulation of share price.

[CrazyProphet]

This not advice only an opinion. TFS is a grey area they have to prove day trading and we have to help them prove it by trading a lot. That being said it is called day trading not week trading so my self I really try not to move the same stock in a day. I also try to limit my entire trades for the year to under 60 also I NEVER remove money from my TFSA . If you never take money out seems to me

[eldub84]

This exactly. They only start taxing capital gains if its proven you are using your TFSA as a job or your income. If you're making random trades here and there or as you said somewhere in the 60-100 tradews a year I can't see how that would be an issue at all.

[CrazyProphet]

AGREED !

[OakTreeforest39]

IMO...if you look on google how many times a day trader can trade during a day you get ....5-20 trades a day! And if you don't take your money out....how can that be an income! Again...it's my point of view! I think last year a lot of people trades very often....just cause of the pandemic....we were all nervous at a certain level! That causes anxiety and with anxiety comes trading! 

[gizmo66]

All well and good but I heard of someone that was accused of using it as a bussiness and it cost him more on legal fees than it would have to pay the taxes so everyone just use common sense and be carefull the government has unlimited resources when it comes to Lawyers