For crypto , I read CRA’s website and seems that it’s the opposite - if you use crypto to pay for goods/services , that’d be business income (part of the business). But if it’s Bitcoin etf , it should be treated as a stock so that’d be capital gains? Also for holding Bitcoin, when you sell it, the gains should also be capital gains? Correct me if I’m wrong .
Does the capital gain / business income determination rule also apply to foreign mutual funds and stocks traded on foreign exchanges? Does the 50% exemption rule also apply to foreign capital gains or losses?
Thank you for making this video! This is very useful. I do trade options. The long side is easy to understand, and the profits are considered as an income because there is no dividend can be receive and mostly these are short term trades. But I also sell put options hoping to receive the underlying stock at a lower price (i.e. at the strike price) and to receive option premium from the short positions. However, most of the time I don't receive the stock (i.e. the option buyer didn't exercise the option). According to what is said in this video, this premium is considered as income instead of capital gain, am I correct to say this? If the profits from trading options are considered as income, can I still offset the losses from these trades from the profits to come up with the 'net income' for tax purpose?
Not necessarily. Income Tax Act S. 49 For most people, the gains and losses from call and put options are taxed as capital gains (on capital account). However, if you are in the business of buying and selling stock, then your gains and losses from options will be treated as income (on income account - see capital or income). When your options are treated as capital gains, their disposition is reported on Schedule 3 Part 3, where publicly traded shares are reported. Gains or losses realized by a writer (seller) of naked (uncovered) options are normally treated as income. However, according to IT-479R Transactions in Securities (Archived), paragraph 25(c), CRA will allow these to be treated as capital gains, provided this practice is followed consistently from year to year.
What's the difference between capital gains and business income? Thanks
Hello 你好! 想問以下問題,
1. Options 如果當係business income, 係咪即係冇capital loss ?
2. 假設如果有60% 資產係capital gain/ loss, 另外40%被稅局視為business income. 請問60% capital gain/loss是否冇影響(用返capital gain/loss 計稅)? 只係40%嘅business income要交高啲稅? 謝謝🙏🏼
For crypto , I read CRA’s website and seems that it’s the opposite - if you use crypto to pay for goods/services , that’d be business income (part of the business). But if it’s Bitcoin etf , it should be treated as a stock so that’d be capital gains? Also for holding Bitcoin, when you sell it, the gains should also be capital gains? Correct me if I’m wrong .
Does the capital gain / business income determination rule also apply to foreign mutual funds and stocks traded on foreign exchanges? Does the 50% exemption rule also apply to foreign capital gains or losses?
The simple answer is YES, capital gains rule apply to foreign assets as well
Thank you for making this video! This is very useful. I do trade options. The long side is easy to understand, and the profits are considered as an income because there is no dividend can be receive and mostly these are short term trades. But I also sell put options hoping to receive the underlying stock at a lower price (i.e. at the strike price) and to receive option premium from the short positions. However, most of the time I don't receive the stock (i.e. the option buyer didn't exercise the option). According to what is said in this video, this premium is considered as income instead of capital gain, am I correct to say this? If the profits from trading options are considered as income, can I still offset the losses from these trades from the profits to come up with the 'net income' for tax purpose?
Not necessarily.
Income Tax Act S. 49
For most people, the gains and losses from call and put options are taxed as capital gains (on capital account). However, if you are in the business of buying and selling stock, then your gains and losses from options will be treated as income (on income account - see capital or income). When your options are treated as capital gains, their disposition is reported on Schedule 3 Part 3, where publicly traded shares are reported.
Gains or losses realized by a writer (seller) of naked (uncovered) options are normally treated as income. However, according to IT-479R Transactions in Securities (Archived), paragraph 25(c), CRA will allow these to be treated as capital gains, provided this practice is followed consistently from year to year.
買金條漲價要
買金條漲價賣要鈉税嗎？Gold bar. In Canada
reporting as 100% Capital gain as same as interest income
+1