Investing as a sole proprietorship vs individual for levy purposes?
If I wanted to set up a sole proprietorship company for my day-trading/investing in the stock market/forex...
Can I write bad all of the stuff I would need (a % of utilities, courses, unmarked computer to trade with, etc) as business expenses and claim the investment revenue as Capital Gains so that 50% of it is automatically tax free right sour the top, or would I have to declare it as business revenue and reward based on the full amount?
If I can't offset expenses as a company but claim the returns as capital gains next it probably isn't worth it, right?
Answers: Whether your day trading/investing as "sole proprietorship vs individual" is the same for levy purposes, i.e., reporting the transactions on your personal tax return (T1 return), rather than surrounded by a corporation tax return (T2 return).
If you are serious in your daytime trading business (proven stock knowlege, # of trading transactions daily and time involved), and if your trading has a restrained expectation of profit (making money), you may deduct a reasonable share of expenses mentioned by you. However, that medium you have to report the gain 100%, not 50%.
On the other hand, if the CRA considers that your afternoon trading has no reasonable expectation of profit, it may deny adjectives your "business" expenses.
Capital gains are generallly for stock investments with a buy and hold strategy, to some extent than for day traders who flips their stocks daily or in a short time (known as "adventure within the nature of trade" in taxation). Under the income gain scenario, you may deduct your interest or margin charges for the stock purchases.
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Can I write bad all of the stuff I would need (a % of utilities, courses, unmarked computer to trade with, etc) as business expenses and claim the investment revenue as Capital Gains so that 50% of it is automatically tax free right sour the top, or would I have to declare it as business revenue and reward based on the full amount?
If I can't offset expenses as a company but claim the returns as capital gains next it probably isn't worth it, right?
Answers: Whether your day trading/investing as "sole proprietorship vs individual" is the same for levy purposes, i.e., reporting the transactions on your personal tax return (T1 return), rather than surrounded by a corporation tax return (T2 return).
If you are serious in your daytime trading business (proven stock knowlege, # of trading transactions daily and time involved), and if your trading has a restrained expectation of profit (making money), you may deduct a reasonable share of expenses mentioned by you. However, that medium you have to report the gain 100%, not 50%.
On the other hand, if the CRA considers that your afternoon trading has no reasonable expectation of profit, it may deny adjectives your "business" expenses.
Capital gains are generallly for stock investments with a buy and hold strategy, to some extent than for day traders who flips their stocks daily or in a short time (known as "adventure within the nature of trade" in taxation). Under the income gain scenario, you may deduct your interest or margin charges for the stock purchases.