GREY:RNKLF - Post by User
Post by
JayDeeon Mar 27, 2019 9:42pm
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Post# 29545800
Big Shorters beware. Trudeau out to get you in new budget.
Big Shorters beware. Trudeau out to get you in new budget. TFSA holders ultimately liable for any tax on day trading in an account.
In recent years, the CRA has been looking closely at high-value TFSAs, in particular whether trading activity in these accounts amounts to carrying on a business of trading. According to the CRA, as of Dec. 31, 2018, it had assessed approximately $114 million in taxes resulting from its audits of TFSAs between 2009 and 2017, some of which was related to TFSAs being determined to be carrying on a business.
The CRA has said that it looks to set of factors to determine whether a TFSA has been carrying on a business, including the frequency of trading, whether the TFSA holder has specialized knowledge of the markets, and the time the TFSA holder spends on researching trades. The government did not provide any additional guidance to taxpayers regarding what it considers to be “carrying on a business,” something the IIAC and certain tax practitioners have long asked for, in the 2019 budget.
https://www.investmentexecutive.com/news/industry-news/tfsa-holders-ultimately-liable-for-any-tax-on-day-trading-in-an-account/