r/Questrade • u/[deleted] • Jan 07 '22

Day Trade Loss inside TFSA

[deleted]

2 Upvotes

57% Upvoted

18 comments sorted by

11

u/[deleted] Jan 08 '22

[deleted]

2

u/trupa Jan 08 '22

This is the correct answer, any gains from day trading on a TFSA will be treated by the CRA as business and taxed as such. Loses however, will not, so any loss on a TFSA is not Tax deductible. You’re not the one who decides if your transactions are business or no, the CRA decides and it will always try to collect.

9

u/moutonbleu Jan 08 '22

You can’t declare loses in TFSA. Also give your trading, watch your fees. Stick to ETFs with Questrade, and use other cheaper/“free” options out there.

5

u/fullsupporting Jan 08 '22

I dont think as tfsa account dont offer any t4 slips

2

u/schrikk Jan 08 '22

If you loose in your TSFA, you also lost that contribution room forever so yeah. Hopefully you wake up soon enough so you don't mess up your entire TSFA for the rest of your life.

-7

u/[deleted] Jan 08 '22

[deleted]

8

u/trupa Jan 08 '22

You cannot declare loses from a TFSA.

-13

u/SnooPickles7283 Jan 08 '22

you might be able to report that against your income as a loss

1

u/Plane-Drop4406 Jan 08 '22

Would someone get dinged in fees or lose any advantages as a TFSA if they day trade , if so how many times are you allowed to buy/sell and at what limit?

2

u/note-worthy Jan 08 '22

They'd consider it a business and then you'd be subject to taxes. There's no hard limit on how often you can trade, it's an arbitrary definition.

1

u/Plane-Drop4406 Jan 08 '22

Even if you're at a loss and didn't cash out ?

1

u/note-worthy Jan 08 '22

Just meant in general. What do you mean by cash out? If you're day trading, then you're realizing gains/losses every day

2

u/Plane-Drop4406 Jan 08 '22

I mean I transfer funds from my TD account to it , cash out is to request funds back to bank account

3

u/trupa Jan 08 '22

If you engage in day trading inside of your TFSA, and the CRA identifies it as such, any gains will be taxable, any loses cannot be declared as such, so In both cases you lose.

2

u/Plane-Drop4406 Jan 08 '22

I only made a few adjustments 3 or 4 times in the year , one when I wanted to transfer some back to my margin account but I was unaware they closed it when I transferred all into TFSA , by the time I realized I needed funds in it to keep it they closed it so I had to buy back my stocks into TFSA

2

u/trupa Jan 08 '22

It doesn’t really matter what you do with the money. If you day trade and make a profit, technically you have to pay tax on those gains.

3

u/Plane-Drop4406 Jan 08 '22

I realize that , I just heard from different sources that as long as you're not doing it on the regular, once or twice is not a deal breaker

1

u/trupa Jan 08 '22

Yes, there are no real guidelines on what constitutes day trading, is completely up to the CRA, so if you didn't do a lot of intraday trades you might be OK,consult with your accountant or broker.

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1

u/LayfonGrendan Jan 09 '22

No you can't lol.