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01-29-2011, 04:26 PM
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#1 | | Proud to be called a RS Regular!
Join Date: Nov 2004 Location: vancouver
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| Quick Question about stocks
If I invest 10k into a stock then sell it for 15k
- I would have a 5k profit (5k taxable income for this year)
Now if I take the 15k and reinvest it to another stock, would I be taxed for the 5k profit?
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01-29-2011, 04:53 PM
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#2 | | Need my Daily Fix of RS
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If you did not buy the initial stock from a TFSA, then the 15K sell would result in a capital gain of 5k, half of which is taxable (so only $2500 gets taxed). What you do with the 15k afterwards has nothing to do with the 5k you made on SELLING the stock. Capital gains tax only applies on realization, i.e. on selling of the stock.
If, however, you did all of this from a TFSA, then you wouldn't be paying any capital gains tax.
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01-29-2011, 04:59 PM
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#3 | | Proud to be called a RS Regular!
Join Date: Nov 2004 Location: vancouver
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thank you
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01-29-2011, 05:15 PM
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#4 | | Proud to be called a RS Regular!
Join Date: Nov 2004 Location: vancouver
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Another thing
-I have lets say 20k in a TFSA
do i just claim my capital gains from my TFSA at the end of the year or do i need to fund my stocks from directly my TFSA?
-not so sure because im using an online broker
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01-30-2011, 03:11 AM
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#5 | | Rs has made me the man i am today!
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you don't need to claim gains/losses within your tfsa
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02-10-2011, 04:42 AM
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#6 | | I keep RS good
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the downside of TFSA is you can't claim losses. so if you're a new/shitty trader, you wouldn't use your TFSA for those purposes.
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02-10-2011, 06:15 AM
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#7 | | I contribute to threads in the offtopic forum
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| Quote:
Originally Posted by waddy41  you don't need to claim gains/losses within your tfsa | you will be taxed though if they are "realized"... according to the cra website.
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02-10-2011, 06:23 AM
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#8 | | Everyone wants a piece of R S...
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Does that include foreign equities in TFSA? I thought those are still subject to some type of tax.
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02-10-2011, 08:25 AM
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#9 | | Revscene.net has a homepage?!
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| Quote:
Originally Posted by MoBettah Does that include foreign equities in TFSA? I thought those are still subject to some type of tax. | Any earnings/losses done through a TFSA account does not have any tax effect on you.
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02-10-2011, 10:51 AM
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#10 | | My dinner reheated before my turbo spooled
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max tfsa up to this year is 15k correct?
and if I earn 2000 on the TFSA the 2000 is not taxable?
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02-10-2011, 11:22 AM
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#11 | | I contribute to threads in the offtopic forum
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Something worth reading http://www.cra-arc.gc.ca/tx/ndvdls/t.../vntg-eng.html Quote:
An advantage may also include any increase in the value of the TFSA that can reasonably be considered to be attributable, directly or indirectly, to:
* a transaction or event (or a series of transactions or events) that does not reflect commercial terms and whose main purpose is to enable the holder (or another person or partnership) to benefit from the tax-exempt status of the TFSA; or
* a payment received in substitution for either a payment for services rendered by the holder or non arm’s length person, or a payment of a return on investment or proceeds of disposition in respect of property held outside of the TFSA by the holder or non-arm’s length person.
| I think the bolded line means that if the CRA bust you for using your TFSA as a source of living income, you will be taxed. Correct me if I am wrong.
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02-10-2011, 12:35 PM
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#12 | | Rs has made me the man i am today!
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| Quote:
Originally Posted by MoBettah Does that include foreign equities in TFSA? I thought those are still subject to some type of tax. | pretty sure we only pay tax in canada on capital gains on US equities...we have tax treaties with some countries
however, the dividends i receive from US companies have taxes withheld...
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