How do you/others arrange the trading activity (ex. futures/options strategies) in order to optimize taxes and look clean in front of CRA:
1. As personal trading activity, ie. reporting the profits in your income tax return?.
(Then how to prove what is trading profit and what is conseratively-earned cap gain?
Suppose that I don't have employment income, does the marginal tax rates apply to my trading profit, or CRA takes its 40%)
2. As a legal entity
(LLP, Inc may be?)
3. Incorporating an offshore company
(but how the local CAN brokers trear you?, any additional disclosures, treatment of cap gain?)
Are there any other tax optimization techniques that should we focus?
Thank everybody who contributes to this subject!
Edited 1 time(s). Last edit at Tuesday, October 3, 2006 at 05:01PM by dukatu2.
1. As personal trading activity, ie. reporting the profits in your income tax return?.
(Then how to prove what is trading profit and what is conseratively-earned cap gain?
Suppose that I don't have employment income, does the marginal tax rates apply to my trading profit, or CRA takes its 40%)
2. As a legal entity
(LLP, Inc may be?)
3. Incorporating an offshore company
(but how the local CAN brokers trear you?, any additional disclosures, treatment of cap gain?)
Are there any other tax optimization techniques that should we focus?
Thank everybody who contributes to this subject!
Edited 1 time(s). Last edit at Tuesday, October 3, 2006 at 05:01PM by dukatu2.