shoudlve done it in a tfsaAMD, Tesla and Amazon have the biggest Forward EPS forecast for 5years. Will they actually deliver? Market is starting to doubt all three. I own AMD and Tesla hoping both crash so I could buy more.
I know a guy who made a million on AMD stock. He bought at 7 bucks and sold at 150. His tax bill was gigantic.
You can buy US stocks in TFSA? He's with TD idk if they allow it.shoudlve done it in a tfsa
Yes, you can. You can open a US dollar TFSA and buy the US stock, or they sell the Canadian version as well that you can buy in your Canadian TFSA.You can buy US stocks in TFSA? He's with TD idk if they allow it.
I just looked into TFSA. It has a contributition limit. If you think you picked a 10x winner, as my friend who works in the industry thought at the time he dropped 100k into the stock to yield a million bucks, you will need that 100k TFSA limit if your goal is a million. TFSA is just 6000 a year. (55K USD total). Therefore, you'll need to buy it outside TFSA and therefore can't avoid that huge tax bill.shoudlve done it in a tfsa
You can also use your RRSP account for tax deferred status. You can skillfully invest to avoid big tax bills.I just looked into TFSA. It has a contributition limit. If you think you picked a 10x winner, as my friend who works in the industry thought at the time he dropped 100k into the stock to yield a million bucks, you will need that 100k TFSA limit if your goal is a million. TFSA is just 6000 a year. (55K USD total). Therefore, you'll need to buy it outside TFSA and therefore can't avoid that huge tax bill.
Are there other ways apart from TFSA/RRSP to minimize tax?You can also use your RRSP account for tax deferred status. You can skillfully invest to avoid big tax bills.
Canadian dividends in a regular investment account, little to often no tax if you are in a low tax bracket.Are there other ways apart from TFSA/RRSP to minimize tax?
I have heard of this also. I am not sure but I think if it resembles a business(maybe like a full time job),then it will be taxed as a business. Kind of a grey area. I would be very surprised if only 5 trades would be a problem.I was reading that if your trade count for the year is a certain number or greater, CRA thinks of this as employment and charges you marginal income tax on 100% of the gain instead of 50% of the gain.
Does anyone know what is that trade count? I try to keep my trades less than 5 a year but this year has been different due to rebalancing needed to buy some deals.
Read this. It has all the rules:I was reading that if your trade count for the year is a certain number or greater, CRA thinks of this as employment and charges you marginal income tax on 100% of the gain instead of 50% of the gain.
Does anyone know what is that trade count? I try to keep my trades less than 5 a year but this year has been different due to rebalancing needed to buy some deals.
If we assume your friend didnt open that position as soon as he turned 18 (which is when the limit is the lowest), then he probably had enough in his tfsa to make that move. AMD didnt go from 7 to 150 like GME, it took almost 4 years, for long term plays like this, a tfsa is almost always the better way to go.I just looked into TFSA. It has a contributition limit. If you think you picked a 10x winner, as my friend who works in the industry thought at the time he dropped 100k into the stock to yield a million bucks, you will need that 100k TFSA limit if your goal is a million. TFSA is just 6000 a year. (55K USD total). Therefore, you'll need to buy it outside TFSA and therefore can't avoid that huge tax bill.
Theres no actual stated number, its all assumption. I think it moreso depends on account size to number of trades. When my tfsa was small Id make like 15 trades a week, never heard anything from the cra. Now its bigger and with the same amount of trades nothing has happened. I think you need to be doing a lot of trades with an account like 25m+ to get caughtRead this. It has all the rules:
7 Day Trading Rules in Canada | Simplified Investing 101
Day trading stocks, currencies, and other assets have become popular, especially since trading can be done online in the comfort of your home. Earning full-time…simplifiedinvesting101.com
Rule #4: If you did more than 50 trades in a month, you will be classified as a daytrader, and all income will be taxed. It is illegal to daytrade in a TFSA.
He dropped like 100k usd in a single day and held it. TFSA limits are accumulated over yearssss. He bought in 2016 and it was much lower limit back then.If we assume your friend didnt open that position as soon as he turned 18 (which is when the limit is the lowest), then he probably had enough in his tfsa to make that move. AMD didnt go from 7 to 150 like GME, it took almost 4 years, for long term plays like this, a tfsa is almost always the better way to go.