Stock Market: How Taxes Work In Canada

[@beaviswealth]

As requested, here is a video on how taxes work in Canada - Enjoy! :) 📈📚 As always, if you're a beginner to the Stock Market in Canada and you're looking for a step-by-step blueprint on how to get started... Find out more about our Investing Academy here - bit.ly/theinvestingacademy

[@nicdekroon-finance5439]

Brandon Beavis Investing thanks:)

[@nicdekroon-finance5439]

I’m only 18 and it’s really helpful 👍🏻

[@henrylimanto2178]

Thnx mate, been waiting for more confirmation about taxes

[@realyman]

Thanks very helpful 👌

[@abumusa2455]

$1752 ToDay. *( **po.st/xmrex** )*

[@Nivan156]

You drop this video at perfect timing for me. Thank you!!!

[@DjShadowsound265]

after taxing personal tax at my university, its nice to see someone explaining taxes, you cant avoid them so youre better off embracing them and knowing them

[@InvestingRobinhoodInvestor]

Great video Brandon! Everyone is so focused on gains and not taxes so glad you covered this

[@carinaoliveira5850]

We need more videos like this. It is soooo important that we understand how our taxes work for each situation, and how to best optimize our investment plans around them. Thank you!

[@juliahanoukaev4853]

Your expectations are so much easier to understand than the bank representatives. Thank you

[@Raycardo]

Hey Brandon! Great video! A question I had is, if you are investing in stocks in a TFSA, you don't get taxed in Canada. But if within your TFSA, you hold US stocks, are you subject to paying US tax on those US stocks? If so, how does that work?

[@beaviswealth]

That's technically correct. The US dividends will be subject to a 15% withholding tax. You don't need to file anything or worry about it, but you'll basically be receiving slightly less in dividends vs if they were Canadian dividends.

[@shuchinghsieh8307]

Great info. How about capital gain/loss on US stocks in TFSA account. Are they tax payable? Do I need to file those?

[@audiostuff9065]

How about a video on hidden tax drags/etc.. when investing on US listed ETFs like VOO in a TFSA?

[@cy080808]

Your cat 🐈 Reggie is such a drama queen! She looks smart .. comprehends Canadian taxes more than me..😂 timely n informative content at springtime ..👏

[@dr.julien]

Hi Brandon, thanks for a great video! I am holding US Stocks in my cash account with TD. When I sell it, would it be subject to 50% as taxable income (CRA) or 15% tax on long term capital gain (IRS)? Would appreciate your help!!

[@GamerThatSucks13]

Did you ever get your answer?

[@Wrangler506]

My account in wealth simple app is a TFSA. Does this mean it’s not taxed?

[@jordan.h6821]

Quick question, if i max out my TFSA in one year. The following year say 2021 the max amount renews correct? And if so you mentioned that what ever you withdraw you can use for the following year, could you expand on that?

[@FF2PM]

This is very helpful. Question. 1.Do WealthSimple/Questrade send a Income Tax slip yearly with your Capital Gain/Loss + Dividend so I can just plug in the number and hope for the best. Or am I suppose to keep track of my CG/CL of the year. 2.Who is withholding these 30% divident. US Govt? The form... is very US. SSN ... am I suppose to replace it with SIN. lol. This also might sound silly... the dividend that are paid out to me in QuestTrade. I can buy another ETF with (all my dividends I earned).. and still have to subject to this tax? (I believe the answer is Yes. you answered it in the video) Side note: Protein powder + preworkout. Then I see a frosted flake. This gotta be a dirty bulk

[@beaviswealth]

AHAH good eye.. frosted flakes are roommates.. promise! LOL haha yes you will receive tax slips for filing taxes. Would be super tough to monitor that all ourselves. and yes, those reinvested dividends would still be subject to tax. Great questions - this is a good article if you're interested in a read - www.freshbooks.com/blog/w-8ben-form-canada-tax

[@nicholaspeitsch6160]

Great video! Would appreciate more calculations on the dividend taxes though!

[@elainel.g.6396]

Thank you for this very informative video. Brandon takes complex subjects and breaks it down easily. He is an excellent speaker and easy to understand.

[@beaviswealth]

Thanks Elaine! Happy New Year :)

[@JohnMaxTang]

Well explained and perfect timing for income tax in Canada at this moment!

[@valeria3070]

Hey, I absolutely love your videos there are pretty helpful. I am a beginner in the market and I appreciated that you are more into the long term trading and no penny stock or retail trading.

[@tomkillsall]

This is one of my all time favourite videos! Thanks bro! What happen if I hold US dividend stock via like Vanguard ETF? Would I be taxed same as holding US stock directly? Thanks kindly

[@michaellastname8243]

Thanks for this video and the TFSA and RRSP explained videos. Really helped a lot. I am just starting with my investing. But while doing my research I have ran into multiple articles about the CRA's advantage rules, which seems to go against the whole tax free part of the TFSA. Could you please make a video explaining this. It just makes no sense to me.

[@bathombre9739]

Can you write off expenses like your phone, fees, laptop?

[@nonovyoubiz6906]

TFSA's are tax free only if the funds are invested in Canadian companies. If one holds US stocks in a TFSA, there are US withholding taxes on dividends. The US doesn't recognize TFSA's as a retirement fund. If US stocks are held in a RRSP, there are no withholding taxes on the dividends. When it comes to international stocks, withholding taxes on dividends are likely taxed, regardless if the stocks are held in registered account or not.

[@glenf4115]

Thanks for the info Brandon, great advice. One question: If your investments double in a TFSA and you sell half and withdraw it from your TFSA - in the next year can you then recontribute that withdrawn amount plus the next years limit even though you will still have 100% of your existing TFSA?

[@beaviswealth]

You sure can Glen. You can recontribute the withdrawn amount PLUS the additional space for the next year.

[@vladimirrabikovich4123]

I like the way you explain thanks

[@jaym2356]

Very informative. Thanx man. Question though, for stock investments which one do you recommend, Questtrade or Wealthsimple? The 1st has fees per trade and the 2nd claims its free.. would be appreciated to hear from you and glad I came across your channel..

[@beaviswealth]

Thanks Jay. I actually did a video on comparing the 2 if you take a look on my channel page. I like them both but I use Questrade :)

[@piyushgaglani5255]

very informative. Thank you. For day trading or selling stocks within couple of days, does Canada have short term capital gain - long term capital gain.? what is the difference ?

[@AustinPerez]

Very very useful video. Keep up the good work buddy ! One question - can I use the W8-BEN form to reduce the withholding tax for US stocks in my TFSA ?

[@hassaninvesting]

In most of my Holdings I try to hold it for at least a year so I get long term capital gains which is 15 % . I live in the United States.

[@Viewer13128]

can you make a guide on how to trade using TFSA and RRSP?

[@beaviswealth]

I'm not much of a trader myself but I do have 2 vids in the description on how those accounts work!

[@tazzz69dazzermind35]

Azu Shi Go to the bank & open a TFSA account. Ask the bank to set you up with their stock trading system. You can use another company like Robinhood, wealth simple, etc. But to keep it simple. Just ask the bank, you set up your TFSA with. To set you up to trade stocks with their app. Simple.

[@battojitsusenpai3191]

You said the Wealthsimple accounts aren't registered. But I have a TFSA in Wealthsimple, is that still taxable?

[@aylamonic]

I think they've made updates to the service since this video came out

[@ritchmedia7132]

haha great video, we are like your cat at 5:39 "i wanna hear you talk about taxes".

[@davidy4961]

Not sure if you check these messages, but I am wondering - For the stocks scenario, how does capital gains work when you keep value averaging one stock downwards and then finally sell some of it?

[@anuradhajain3612]

Brandon Thanks for talking about the taxes this is one of the important aspect to know about.

[@crustybastard8256]

Awesome video! You answered some questions I’ve been pondering! Liked and subbed👍🏽

[@djjackson1454]

So if you have a TFSA with us dividends, and Canadian dividends I’m still taxed on that?

[@hdi21c]

Hi Brandon, Question : Canadian Dividends in TFSA are not taxed and US is subject tax 15%? and in Non registered account, Canadian dividend is subject tax 15% and US dividend is 30% without w8ben ? Thank you for your great video !!

[@aakarshit307]

Love your videos. Thank you for providing real value in your videos. Subscribed👍🏻.

[@beaviswealth]

😀

[@patrickaraneta2952]

Thanks Brandon for the information! I still have a question what if I do a day trade in just one day for this year would I still get tax as a business income? Or the CRA would chase me for that? Would they tax all my profits to business income for that? Thanks in advanced!

[@busheybushdawg]

Hi Brandon, excellent advice thank you! Would you recommend that I hold a US equity total market ETF in a taxable account or is it better off in an RRSP as it pays some dividends?

[@Mairve]

So how does actually paying the taxes pan out? do you keep money aside for tax season and file your taxes then get one big massive tax bill at the end of the year? can you manually pay taxes throughout the year so its not a massive bill? is tax automatically taken off at the time of selling a stock?

[@pradeepdarji5407]

In Canada they don't have different tax bracket for short term(less than 1 year holding) and long term capital(more than 1 year) gain?

[@Eti_]

Out of curiosity, who would you send the W8 BEN form to? CRA or IRS?

[@beaviswealth]

Great question haha! It's actually neither! You send it to your dealer :) this is a good article if you're interested in a read - www.freshbooks.com/blog/w-8ben-form-canada-tax

[@amitanand5624]

Excellent analysis of taxes Brandon, I live in Canada and can truly relate to it. Though my investments are in TFSA only 😀

[@beaviswealth]

TFSA, you're in the clear buddy! cheers dude Appreciate the comment

[@landokhan]

Thank you Brandon. I look forward to learning more about taxes on capital gains and wealth management/loopholes from you. All the best!

[@anuradhajain3612]

Sorry I forgot to mention that you did not talk about the percentage the taxes will be applied for capital gain or Divident

[@jsic2775]

Hi Brandon, thank u so much best videos for Canadians! I was wondering and your example of capital gains if bought at $100 & I sold at 150 and then re-buy into the same stock because it was going down at a better price do I still get taxed.

[@BigDaddy-cr2hz]

If stock holding is less than 364 days, would that be trading income/loss which would be considered as employment income?

[@a_d_s5361]

Just discovered this channel yesterday and I’ve already watched a ton of videos and have learned a lot. With regards to this specific video I was unaware of this $50K tax free dividend loophole. I’m on CPP disability due to a chronic health condition. Technically I am still “employed” by my former employer but I do not and cannot work anymore therefore I don’t have any employment income. I do however have some funds to play around with in the market. What would be the best /simplest way for me to earn as much dividend income as possible? I understand the answer to this question might be long but if anyone has the time for a brief piece of advice or a link to a helpful article I would appreciate it. Thanks again for making these super informative videos!

[@meinkapstadt7446]

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[@meinkapstadt7446]

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[@chrislysiak9561]

Brandon, are you saying that any profit made on the Questrade TFSA account is tax-free even if it's a day trading? I mean, if I buy and sell stocks every couple of days and say I made $100,000 in capital gain in 2021, is it still tax-free? Please clarify.

[@deanoudhini7292]

Thanks for great video Question,Isn’t it better to hold American stocks in a rrsp account for tax purposes as apposed to non registered account. As well is dividend income more favourably taxed when you don’t exceed a certain amount ex: 75000 per year would that amount be taxed less than capital gains.

[@amnanasir427]

I'm kind of confused, if I buy a Canadian dividend paying stock through a TFSA account, I still have to report it in my taxes?

[@michaellamar6895]

nope. If you're using registered accounts (tfsa, rrsp) you aren't paying taxes.

[@Kevin_Street]

The special guest star returns! And looking cuter than ever. Thank you for another fascinating video. There's a lot in this one that I didn't know, so it's definitely a keeper for the Saved folder and a rewatch. "But the way that I like to look at is, if you're paying taxes, at least that means you're making money." Exactly! I want to earn enough money to go up to a higher tax bracket. It's a personal goal. ;-)

[@beaviswealth]

hahaha she did 😅Thanks Kevin! I appreciate that man, enjoy reading your comments

[@keeransritharan4208]

Amazing video man! Keep up the great work!

[@panemanager]

Dude that is scary... I’m legit reading about margin accounts and equities US withholding tax as you released this vid! Lol kudos sir 😉

[@beaviswealth]

geez... what the odds.. haha 🙃

[@panemanager]

Brandon Beavis Investing ikr? I almost looked over my shoulder! 😆 Great stuff bud!

[@beaviswealth]

Pane Management haha I wonder what my next vid will be about.. (depends on what you’re reading 😂)

[@MrPeteroni1]

what happens when you sell a stock on a lose/gain in your TFSA (less than a year), does it still get taxed?

[@FIEEN]

I have a TFSA account where I do tradings for short term or day trading, can you please find out if this will put me in trouble in future? Thanks

[@Minepro140]

I’d also like to know

[@OneAndOnlyKJx]

I believe you can't day trade in a TFSA. From what I understand day trading is considered business income.

[@travisloewen6191]

Great info! Do you know what options income (selling covered calls) would be classified as?

[@RameshKumar-mj7dv]

TFSA acct charges transaction fee of $9.99 for each trade that I do and also $25 for every 3months if the balance is less than $25000.00 This is additional fee over the brokerage fee for every transaction. Di you encounter this fee?

[@MayDayDevinci]

what about taxes on US stocks held in a canadian tfsa?

[@luisdemetrio3053]

Good information! Thank you

[@beaviswealth]

Cheers Luis! Thanks :)

[@catropractor]

Exactly what I was looking for and of course you're the one teaching it. Love your channel and videos. You're literally so nice and helpful. You look great hun just do you 👌🏼🙌

[@landokhan]

Excellent video. Is it possible to pay less tax on capital gains when I reach a certain age? How does retirement or joblessness factor in? Thanks!

[@tomisking18]

Say you're 55. Can a person defer and offset their gross earnings into retirement (65+) off the taxable income made from rrsp withdrawls?

[@brandonbh04]

Is it best to pay for an accountant to help with all of this tax stuff? Is that expensive? Thanks

[@Mist_R]

Please make a vid of how to report tax on gains/losses for non registered accounts

[@tabysart]

omg I didn't know this... I have like 3 different accounts, plus a 4th without any money yet.... good info!

[@tomisking18]

If for whatever reason you didn't file a w8ben, can you go back 3 yrs and file a capital loss on the 15% taxpaid over the 30%?

[@Catsarecutey]

Hey Brandon How taxes work for my Australian or Uk stocks being a Canadian investor investing from Questrade or IB

[@captainaxlerod1297]

Are futures trading profits capital gains as well?

[@coreyfudge]

Excellent video. Best I’ve seen for us Canadians! Cheers

[@apexgambitinvesting7148]

Anyone know whether you pay taxes on 50% of EVERY trade's capital gain? Or is it 50% of your annual (tax year)'s total net capital gain for the entire year? ie. do I need to keep track of the capital gains/losses on every single trade that I do? Or do I just see what my total gain is for the year and pay taxes on 50% of the total?

[@Random.Adventures.]

Hi first thank you for your video. I have a quick question lets say I have a capital loss in my TFSA account of 40k and I have a Capital gain in my Margin account of 40k. Can I offset my TFSA capital loss with the taxes I owe from my Margin capital Gains. Speaking as not a day trader just as a long term stock holder Thanks in advanced.

[@myytacc4430]

So Brandon if I have a profit of $100, $50 will.be condsidered as an income? So I have to pay 15%($7.5) of $50? Thanks for the video!

[@CuriousChoi]

Great video Brandon. Extremely informative. Question though Does this apply with cryptocurrency? So 50% of that is taxed?

[@soapbox187]

I dont think crypto is included due to it not being regulated. Governments are trying to regulate but since there is no clear origin there is no clear path to regulation. This is for the time being. Court and legislation battles wager on though.

[@richardhaensch6677]

good video, one thing, I've read that IF you are an active day trader, cra considers income from that as Earned income and not as Capital Gains. Have you heard this, any thoughts?

[@jinghaosu9339]

I am curious, can I do day trading on my TFSA or RRSP. Or it's better with a non-registered account?

[@ssct5280]

Thank you for sharing helpful info. I'm still not really sure about the form W-8ben. If I hold US stock, do I need to fill out the form for register account in order to get tax benefit or not necessary? and for the non-register account I know I should fill it out, but I am not sure about the process and where or whom I should send or submit that form to?

[@Zenbeau]

good channel, lots of value, very informative. subscribed. as a canadian investor you've helped me out alot. and you are really good at explaining your stuff.

[@monapatel8811]

Can you do a video on short term capital gain tax in your tfsa ?

[@truenorthcanadian5628]

You know discussions like this get interesting and crucial when a cat wants tk listen ;)

[@yolodolo9143]

So I cant use capital losses from the stock market for my annual income from work?

[@LocalChannelTrading]

Great Video, Quality content keep it up!

[@beaviswealth]

Thanks man

[@brandondiesbourg3224]

ow does this work if you own a Canadian ETF made up for Americain companies, for example VFV

[@laythabd5346]

Is there any limit for capital lose. I mean if i lose for example 10 thousands .can i dedacted all that form capital gain .

[@praveenhmmm]

As always love ur videos. Can you plz make a video on "If derivatives (options in particular) of US stocks can be traded from Canada and the tax treatment on the capital gains from trading such derivatives". Thanks

[@Brian-zb1mv]

I approve.... of the Popeye’s Value size C4 Original. 👀 And thanks for the rest of the advice! 👌

[@zheaandreaang9133]

How are ETFs taxed? Like if I held a VFV etf in a non-registered account?

[@RiceballRox]

Can you sell a stock to realize a capital loss to offset the capital gain from another stock, then immediately buy that stock back meaning you’re still holding the same stocks, but realized loss?

[@RiceballRox]

NVM, found the answer, there’s a 30 day superficial capital loss rule =)

[@beaviswealth]

You're correct.. you've got to watch that superficial loss rule. Thanks for commenting. - Marc

[@Okanaganguy2021]

Margin account is good for higher risk stocks? Hello from Vancouver Island:)

[@UNoxNinja]

Does Forex count as capital gain or they fit in another category?

[@briano5435]

How are we taxed if we have capital gain on Tesla or Ugaz as a canadian residence buying a US for a day trader?

[@hirenvisa]

Excellent presentation of tax structure,

[@suzytruong4219]

Excellent video Brandon! All the information is well presented, reliable and fully correct!

[@beaviswealth]

Thanks Suzy :) Happy New Year!

[@wetclay]

Very insightful, thank you

[@nitas1835]

Hi Thanks for the info. I am contributing to a company’s Shares each month. I was thinking of selling some of these shares. It’s a Canada company but US shares. I submitted W8 every 3 years. I was wondering what will happen when I sell some of those shares.

[@dineshreddyr10s]

It’s been a year since you post this video! I see wealth simple trade account do have TFSC accounts! Are they new?

[@2010laleh]

Wouldn't 15% US tax apply to dividend received on US stock even in an investment in a TFSA?

[@josephparagliding]

another awesome/very informative video, thanks for the links also!

[@danielgdmn]

Are dividends still taxed in your TFSA or is this only for cash accounts?

[@electricskye8995]

Zyzz! Do you need to submit the W-8BEN form for an RRSP account? Or only for TFSA and non-registerred accounts?

[@beaviswealth]

😅Nope. No need for TFSA and RRSP. JUST Non-registered.

[@integra8502]

If you Sell a Stock and make a Gain of $1000.00 .....BUT it stays in your Brokerage Account as CASH,... does that count as Capital Gain ? Thanks.

[@beaviswealth]

integra good question. Yes!

[@huyduong5716]

Does it apply with RRSP account as well. Sell stock and have capital gain but haven’t withdraw from the account?

[@DiamondScuff]

@@huyduong5716 rsp. u dont pay tax unless you take out the money from your rsp. now tfsa you can take out the money and still dont pay tax! TFSA is superior but you only get 5500 per year usually you can contribute per year. it was 6k for 2019. but TFSA is the best tax free for capital gains