Just as an FYI, 11% break even and 9 % make bread.(Rough figures)
So here is to Chandresh being one of the 9 %.
I am not a very active forex trader and my accountant advises me to claim as cap gains as I have bought and sold my positions around 10 times last year.
Is there a fine line between what is considered active trading and intermittent trading?
Most of the Markets were open during the daylight hours and were traded during the day time. Hence all the trades took place only during the day.
But those who were employed, did so on a minor scale, being employed during those day light hours. Schedule 3 & Schedule 4 took care of all of these that reported the trades.
With this current day communications and with Internet and the portable hand held computers and Twenty Four/ Five-day markets, the tax department has not yet moved up or upgraded their mental capacities to rethink a newer world for the traders and the day trading concept to fit the current trading activities.
Where and how they drew the line and separated the employees with a few trades from those that traded all of the time, is a decision that was made by the tax department and is still unknown to most of us. While the tax break provided by the capital gain and or loss was very minimal, in the initial stages, it did not favor much, either of the parties. While how the Tax Department made the decision NOT to permit the day traders the benefit, is still in the air, one factor seems to stand out, which is, those who trade daily and in multiple markets and multiple times, seem to indicate the desire to be called as Day Traders, have large number of trades and also seem to have losers that are large and many. Though there are many disclaimers posted at many a places and websites, many who trade and loose consistently, seem to ignore these and bent upon gambling away their money in bundles to a few that you classify as 9%, the ultimate winners. Seeing this as a signal, a flag that their computer systems drop, they knew, that there will come a time, everyone will be squirreling away their gains under this schedule.
Where else can they find a CASH COW, that they can milk, while the 9% of winners are walking away with most of the winnings, not contributing to the coffers. How can they stop the losers from their loosing streak? Just by calling the WINNERS and the LOSERS as gamblers and high risk takers. That's how!! Give the DOG a BAD name and shoot it.
Though their intent might have been to tax those who are Winners, they hit the losers at the same time, by only permitting them to adjust the losses against the gains. Now, till all of the losses are recovered, they will have to permit the losers in a side that they consider as NON day traders. And prey, do tell me where that demarcation line is? It is up in the air.
Now we know who has the whip in their hand!!
That brings back a small quip from the annals of history Where in a Kid " in a kid's show said " "Equator is a menagerie lion that runs round the globe and passes through Africa". I don't want to call ALL of the IT departments around the world this.
It will suffice by saying that "Income tax was a temporary measure that was put in place to fund and pay for the wars, and build up a security force to protect us in the future, if the need arises! which to this day, haven't been settled as yet". If the temporary measures are still haunting us for the past 100 years, I am going to hang in there for the next hundred and see what the permanent measures are going to be and heave a great big sigh of relief, and then curl up and die.
Have a good one.
Freddie.
On a related note, I am a bit confused about CRA's policy of allowing $100k worth of wealth transfer for a new comer without any reporting (Deemed disposition, FMV- ACB at the time arrival), what happens after that amount? CRA site is not clear on that.
Hey ftfl- you should be writing editorials for publications- wow!
seriously
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