Hot stock tips
- Thread starter Rain City
- Start date
Rain City
Crew Member
Those were the days. Lunch at the NBI, dinner at the arms, Wild Coyote for dessert.
wildmanyeah
Crew Member
congratulation at taking some profits
buying is easy selling is hard
buying is easy selling is hard
Corey_lax
Crew Member
I have a weird stock from when the weed stocks were going wild and Aurora did some sort of a split. I ended up with 2 shares for Australis Cap which is worth $1 lol. Is there a way that I can just get rid of these so I don't have to look at them? As apposed to selling them and paying Questrade the $5 or whatever fee/commision for selling them. It sucks looking at a useless stock, but it would suck to pay to get rid of it...
I held 1000 shares of a stock that had been plugged to me by a promoter who had given us some previous good information, FV I think. It never made good and dropped to a cent each over a number of years, company had a big float, no assets and no plays. I've seen enough unexplained price action so just held it, waiting. Sure enough, a pump and dump finally started this year with larger and larger purchases and the price chased up to about 23 cents at which point I sold it. I'm glad I kept it.
CBsqrd
Well-Known Member
Call up Questrade and they should sell it for you without the commission. I've done that with some of my defunct positions in my TD account.
hippaisland
Well-Known Member
16M in revenue and they want to be valued at half a billion out of the gate by looks of it. Seems overvalued but with today’s market and the frenzy that will likely come with an EV IPO it should be fun to watch!
sasqman
Crew Member
Actually tried to get wood gundy in 2 weeks ago, and there was nothing left to buy up for the dispersment.
ab1752
Crew Member
I didn't even bother to try. I fly a tiny bit too close to the sun on this one so its straight to the open markets for me. See how it goes.
Brian Reiber
Well-Known Member
Thanks for attaching this article. Does anyone on the forum have any insight into this or perhaps an accountant in the family who can speak to this. I have read a few articles on the subject over the years but they are all very vague and essentially suggest that the CRA can determine you to be a business without any set of hard rules to support it. Provided that CBDT doesn't fall too much further I'm sitting on a pretty big windfall in my TFSA and I have concerns about the CRA coming looking for blood money. Sure I swing trade a bit....who wouldn't with this kind of market volatility. That hardly makes me a business......hell I'm not even an experienced investor just another joe trying to squeeze a buck out an overall crappy global situation.here's an old article on taxation of frequent trading profits, I know some of you seem to think you can do whatever you like in your tfsa's but that is not necessarily the case, they have gone after many people and won (lost some too) and not only do you pay taxes if you lose, you pay on the full amount of the gain, not like the 50% cap gains tax you'd pay in a non registered acct. It seems this trading will eventually attract an audit of your acct. they've been way to busy to bother with the little guy but if they get the time you can bet that they will, I remember a good friend getting hit for real estate flipping many years ago and he was audited a few years after the fact.
I do most of my trading in my rrsp's for this reason but if I make some quick gains or see something about a stock own in my tfsa that makes me what to dump it, I document these trades with notes on why I sold, like analyst downgrades, taking on too much debt etc , noting where and who provided the info for my decision, I'm probably over paranoid on this but I do believe there will be a ton of tfsa audits down the road nailing people who least expect it.
Stop using your TFSA to frequently trade stocks — the CRA may see it as taxable business income
Jamie Golombek: You may be surprised to learn that your trading activity could constitute a business, even if it’s done inside a tax-free savings accountfinancialpost.com
This is not professional advice please seek a professional.
I think the primary focus of these audits have been for actual professionals ie brokers who have better access to information trading in their own personal TFSA. Or actual day traders trading in their TFSA with high velocity. I don't think people will get hit just for buying a stock and it doing well.
The whole business income vs capital is a difficult tax topic and is focused on original intent. I think it's easier to think about it from real estate perspective if you bought a house to do a quick renovation and flip that is a business. However, you buy a house to rent long-term that is a capital activity. The same type of logic, in theory, applies to other transactions.
The above being said, always use your professionals.
Brian Reiber
Well-Known Member
Yes, good points. It is certainly an interesting subject matter and one that is hard to get clear answers on. I tried calling the CRA yesterday but it's in the best time of year to do that. So many in the que that they wouldn't even put me on hold. Definitely a question that requires a professional opinion if I ever get that far I'll post what I find out but I suspect that will just be another opinion
ab1752
Crew Member
The targets cra is aiming for are capital markets industry professionals who are high frequency trading. Everyone, cra included, will only render an opinion,, until these incidents are tested in court. The tfsa guidelines are quite vague but as long as you're not a trader with an institution or the like, you will be fine. I'm in the same position, not with cbdt, but I've only made a few trades well within the guidelines and it has taken off. The beauty is now I can trade that capital within my tfsa onwards.
Last edited:
wildmanyeah
Crew Member
I think the problem is that the TFSA was setup way too generous. The government of the day sold it as a place to put low risk investment and the income wouldn't be taxed and can withdraw as you need. IE GIC, mutual funds, ETF etc.....However, in reality, it makes more sense to treat the TFSA as your casino and just put the risky stuff there and if it explodes you win.
Brian Reiber
Well-Known Member
Thanks, I agree with your thoughts. I just wish it could be made clearer. I am making far more trades per month than I ever expected to and keep reading articles cautioning against this. Certainly not a day trader but as I said before just trying to scratch something out of all of this. Besides we need to replace that DE lol. Does the CRA care how expensive boats have gotten. Congrats on your success. I love hearing stories about people that have found a silver lining in this awful situation.
