mookiemcgee wrote:Dukasaur wrote:mookiemcgee wrote:2dimes wrote:I'm in Canada. I believe the costs of trading stocks in your country kills it as a hobby for me. They tax us foreign Devils pretty high. Then Truedough takes a tithe.
I'm sure there's ways around it but I'm too simple.
I was not aware there was any difference in tax for Canadians buying US stocks. There is no difference in the US if I buy Canadian stocks as long as they are 'available' to trade. I think gamestop on TSX is GME-N or something
The older stockbrokers where you had to wait to talk to someone to give your trading instructions required different accounts for domestic or foreign trades. The new online brokers seem to treat it all as one. I started buying stocks about six months ago and was pleasantly surprised that it was all so much simpler than what I was taught back in high school.
As long as you don't make much money it's not an issue any more, but if you get to the point where you own more than 100K in foreign assets you become a whole new animal in Revenue Canada's eyes, and you're in for a world of pain at income tax time. Of course, I have no fear of that happening.
Thankfully for your Bitcoin is decentralized and should not be considered a 'foreign asset' by RC since that is where you millions will come from
Are you an expert on Canadian Tax Laws?
“Taxpayers are required to file Form T1135 with CRA if they own specified foreign property that in the aggregate cost more than $100,000. In a technical interpretation issued in April of 2015, CRA took the position that Bitcoin, and by extension Dash, Ether and all other cryptocurrencies, constitute “funds or intangible property” and that to the extent that the cryptocurrency is situated, deposited or held outside of Canada and not used or held exclusively in the course of carrying on an active business, it will be considered specified foreign property for purposes of the Income Tax Act. Therefore if a Canadian taxpayer has cryptocurrency for which they paid $100,000 or more situated outside of Canada on a foreign exchange, or if their investment in that cryptocurrency cost less than $100,000 but they already had other specified foreign property that cost in excess of $100,000, they are required to report their cryptocurrency to CRA via the filing of Form T1135. A failure to file Form T1135 as and when required by the Canadian Tax Act carries an automatic penalty of $2,500 for each annual failure to file, with higher penalties and criminal prosecution a possibility for particularly egregious examples of non-compliance.”
https://taxpage.com/articles-and-tips/b ... ning-tips/According to the Canadian Gov’t Bitcoin (et al) are “foreign assets”. So yeah…
