RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Anyone buying now needs to get in to gamblers anonymous I LOVE my margin account. I’m glad I leveraged 2 years ago when the share price was so low. Rather than having a REALLY good year, margin allowed me to make truly life changing money. Life will never be the same again. I deleveraged and paid off everything I own (house included). Tax bill hurt, but I couldn’t be mad.
I’m trying to remind myself everyday that I’m no pro. This year I’m being much more conservative with my amount of leverage. Looking back at this last 6 months with 20/20 hindsight I wish I went in balls deep like last year. But have no reason to be greedy now. If this next 8 months plays out as planned my wife and I will be findependant at 30. Choice and freedom is the ultimate currency.
Lots of time for my daughter. All thanks to Canopy and MARGIN
Democratus wrote: Seanagan, don't you just love Margin Accounts? I like to keep mine just > -$100,000 so I can get the preferred Margin Interest Rate of 3.35%.
Then you have to look at the convenience of always having ready cash available for any eventuality in the Market or at home. Also, Interest paid to buy investments is Deductible against Net Income which almost pays for the loan.
Plus ... Plus, every deposit, every sales transaction is like getting 3.35% Interest on my deposit as it's paying down Margin at the same rate.
If I were smart, I would offset every purchase of shares by Writing Covered Calls, thus covering the cost of borrowingn the cash and then some.
Seanigan wrote: Since last year I’ve tried to limit my trading in my Margin and TFSA. My accountant warned me that I was tip toeing on the “trader” threshold. I don’t think there are any specific set rules that anyone knows of. It’s case by case apparently with many factors considered. I’ve been doing all my trading in my RRSP this year as the CRA doesn’t care, as all that money will be taxed at income when taken out one day.
Democratus wrote: Aren't we all "trading" through all our investment accounts registered and not?
You must be referring to some arbitrary number of trades permissable in registered accounts of which I'm unaware. Do you have that numbe? At what point does CRA say I've crossed some arbitrary line.
I don't trade our registered accounts as much as our un-registered, but I am doing 10 or 20 trades per year and in the Margin Account at least 120 (the number required to get Level 2 quotes).
CRA has never "called" me on my trading activities nor the way they're recorded.
Have you been called on trades, Dontbesogreedy?
Dontbesogreedy wrote: hello professor
that is both true and false
for example: if in your tfsa you buy canopy and just hold it there you are FINE (no taxes, no capital gains etc..)
The more you borrow to invest, the more transactions you make...well that is a different story
(and Yes you can pay taxes on a tfsa if you are 'trading' through it)
Options on the other hand are by default using a margin account (that is ONE of many criteria)
if you meet too many criteria then yes it becomes income (50%) instead of capital gain/loss (25%)
what I am saying...be careful everyone...paying a little extra for an accountant you can sue later if HE made a mistake may not necessarily a bad idea (mouahahahah) also they need the business...