Question for the Pros: Day trading using TFSA?

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Sep 15th, 2020 9:23 pm

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Sep 15th, 2020 7:04 pm

GameChannel [OP]: Member; May 3, 2010; 353 posts; 84 upvotes

Sep 15th, 2020 7:04 pm

Question for the Pros: Day trading using TFSA?

Hey guys - Sorry if this has already been asked and answered. I searched RFD forums but couldn't find anything relevant. There is conflicting information out there.

Question: Does CRA allow Day trading through a TFSA accounts without any capital gains tax implication? If not, what is the acceptable number of monthly trades that would not flag my activity as day trading?

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Sep 15th, 2020 9:23 pm

foz240: Jr. Member; Apr 20, 2017; 183 posts; 330 upvotes

Sep 15th, 2020 9:23 pm

Not suitable. You likely will pay tax.

The Canada Revenue Agency (CRA) audits taxpayers who actively trade in their TFSA.

The CRA takes a number of factors into account when determining whether or not a TFSA is subject to income tax. These include the duration of the holdings, the frequency of the trades, the nature and quantity of the securities, the time spent on the activity, and your intention to hold investments to resell them for a profit.

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