RE:RE:RE:RE:How Much Would You Pay In TaxesI definitely need to look into this. Much respect for the details! We all can learn from this
NeedAPool wrote: My first comment will be this.... Don't take anything you read on Stockhouse, including my response, as gospel. When you are talking about this amount of money incorrect information could cause you significant issues. I would 100% suggest you contact whoever it is you trade with or even the CRA to understand thoroughly what is involved!!!!
Now with that disclaimer out of the way...If I understand the info on the Questrade site for margin accounts correctly, 50% of your gains are taxed. So if you made a million, $500,000 would be added to your taxes as a capital gain. In Canada you would be taxed at the maximum rate for anything over $216,511 which is 33%, Then you have to pay your province tax and that rate varies by province. If you are in Ontario you pay 13.16% on anything over $220,000.
Long story short...if you use a free, simple, online tax calculator and input $500,000 as a capital gain and input your employment income etc. you wil get a pretty decent estimate. Just putting in $500,000 as a capital gain and no other information, it shows you would pay $96,301 in taxes (In Ontario.) Not bad overall if you consider $500k was not taxable.
PLEASE do not use this information as gospel!!!! Talk to a professional. I am responding based on my knowledge and then the use of an online calucalator. I am not a professional accountant...though I did sleep in a Holiday Inn Epress last night :D