CERB & stock market gains

Isn't that just capital gains?

Capital gains and even dividends don't count

Trading in a non-personal, "entity" type account would qualify.

Edward- wrote: ↑ Capital gains and even dividends don't count

Some dividends count:


If I am in receipt of dividends am I eligible for the Canada Emergency Response Benefit?

Yes, as long as the dividends are non-eligible dividends (generally, those paid out of corporate income taxed at the small business rate).

An individual could count this income towards the $5,000 income requirement to be eligible for CERB.

georvu wrote: ↑ Some dividends count:


If I am in receipt of dividends am I eligible for the Canada Emergency Response Benefit?

Yes, as long as the dividends are non-eligible dividends (generally, those paid out of corporate income taxed at the small business rate).

An individual could count this income towards the $5,000 income requirement to be eligible for CERB.

Thanks for correcting me!

georvu wrote: ↑ Some dividends count:


If I am in receipt of dividends am I eligible for the Canada Emergency Response Benefit?

Yes, as long as the dividends are non-eligible dividends (generally, those paid out of corporate income taxed at the small business rate).

An individual could count this income towards the $5,000 income requirement to be eligible for CERB.

This counts for determining self-employment income eligibility.

Capital gains and dividends in general does not have impact on the other requirements to have zero employment or self-employment "earnings" income in order to collect CERB or EI. This is passive investment income.

sorry if my question is primitive.
what if i start doing daily trading transactions in stock market? does that still passive income?
what if i make $100 a day, but didn't cash it out during the CERB duration? any conflicts out there?

meExplorer wrote: ↑ sorry if my question is primitive.
what if i start doing daily trading transactions in stock market? does that still passive income?
what if i make $100 a day, but didn't cash it out during the CERB duration? any conflicts out there?

I am curious to know as well.
I am receiving CERB but since so many stocks were on sale i have been doing a lot of buying and selling in recent days and made around 500$ profit. i wouldn't consider myself as a day trader or anything. just playing around with market while its volatile. Should i stop ? there are so many gray areas.

TouseefK549072 wrote: ↑ I am curious to know as well.
I am receiving CERB but since so many stocks were on sale i have been doing a lot of buying and selling in recent days and made around 500$ profit. i wouldn't consider myself as a day trader or anything. just playing around with market while its volatile. Should i stop ? there are so many gray areas.

Yes, CRA can classify you as day trader and treat your trading profits as business income, instead of capital gains, which will be taxed higher.

TouseefK549072 wrote: ↑ I am receiving CERB but since so many stocks were on sale i have been doing a lot of buying and selling in recent days and made around 500$ profit. i wouldn't consider myself as a day trader or anything. just playing around with market while its volatile. Should i stop ? there are so many gray areas.

Assuming this is done in a non-registered account, it is indeed a gray area. There are multiple criteria CRA use to determine if a particular activity is commercial, covered in P-176R. Day trading ticks at least some of the boxes. If CERB wasn't involved, it wouldn't be a big deal (at most pay some extra tax on profits). If you continue, you do run additional risk, small and all, that CRA would review your activity and decide it disqualifies you from CERB.

TFSA shouldn't be used for frequent trading ever. RRSP can be used for frequent trading, it woudln't be either business activity or income (not a lawyer, but I know a legal precedent that makes me think that way).