Trading TAXES in Canada - Sole proprietorship vs Incorporation (Tax deductions)

[@pkc68]

How can anyone not love love Humbled Trader you ROCK!

[@LofiCity2000]

Sharing is caring LOL I almost choked on my coffee .. thanks humble trader YT wouldn't be the same without you !!

[@humbledtrader169-Gmail-.-]

⬆️Directly get in touch with me!!❤

[@MikailEstrada]

I appreciate all this info Shay! Fellow Canadian day trader here and this helps me a lot. Tax season is such a bummer 😰

[@HomaGhale]

if you trade in uniswap or other dexs, would you still be taxed?

[@pinoylandscaper2023]

Thank for the info I just started trading last year and this video helped me in taxes.

[@andu2274]

Thank you for all the information! It is very much needed for traders based in Vancouver 🙏🌹

[@SnackSavvy]

Amazing video! Clear as day. Thank you!!

[@chrismovac5274]

Great video, enjoyed the injected humor. Nice job passing on info that most find boring.

[@kanyin442]

This is really good information provided in a simple way ❤

[@simoc24]

You are holding up “6” like a Chinese 👍 love it 😊 thanks for the video. I learned a lot. I only made 5 figures in trading, no LLC for me 😅

[@eddierueca8567]

Yes!! been waiting for this

[@fwfeo]

That hand on the chest gesture you did for "appreciation" is almost identical to how Iranians show heartfelt appreciation! 🙂

[@OkImJustCommenting]

That "Mike Bagholder" thing is simply amazing lol!!! Thank you for all you do for the trading community, but especially for Canadian Traders! We appreciate you!!

[@tt1t88]

New to your channel. Subscribe immediately. Very useful content and love your sense of humour. Will keep on watching your other videos. Thanks for your time and efforts creating these useful videos. Cheers!

[@leonardopaternina5146]

One of your best videos ever. I love your transparency and valuable content.

[@marcoechegarayrosa9604]

thanks for your advise and i really appreciate it is in spanich too thanks

[@stillnessjourney5870]

Awesome as always!

[@PicciGabber]

In Dubai (UAE) I pay 0% income tax and 0% company tax :D

[@832elf]

How would you file taxes as a sole prop though? What forms would you use? How do you declare yourself a sole prop? Do you also file your personal income taxes separately then? Therefore filing twice?

[@gagarwal]

Govts should also share losses if they want a chunk from profits.... taxing is bizzare phenomenon

[@derekjp6043]

Still here to support with a comment!! Wishing a little that I had a little more time for trading, I will one day!

[@mindfuljazzy1135]

You're the best!

[@832elf]

You keep talking about daytrading can you please make a video on swinging traders who do options and futures, does it still apply the same way as daytraders. Thanks keep up the great work.

[@gregh2003]

This video is so informative. Canadian tax laws don't even apply to me, an Australian. Yet this video gives me a peace of mind that trader taxes are not as intimidating as they seem. THANK YOU SO MUCH for the valuable content.

[@Taylor88ful]

Thanks for the info! You’re my new favourite person! Lol Question, being a sole, proprietorship or corporation, have you also had your business open up a RRSP and TFSA and run your trading through those account to minimize taxes as well? Would appreciate a video all about that, if you haven’t already made one :) Thanks

[@timiadetona]

You can not do that

[@traderUSA]

It is better to have 2 companies: an offshore trading company in Bahamas or Dubai, where most of the assets are held. You do not pay taxes on business profits... and with an LLC you collect your salary. The second company in Canada only absorbs operational expenses by showing the lowest possible profits to pay the lowest possible taxes, thereby benefiting from deductions. Greetings from Peru. (Translation assisted by chatgtp.)

[@EricSetoInvesting]

Good job - Glad to see a day trader is taking advantage of the SBD

[@AC-MAIN]

Wow. great vid!

[@guitarman3968]

For the owner/shareholder, there isn’t a huge difference overall in net cash after tax. Of course, an employee who has no skin in the game, might prefer dividend income.

[@832elf]

Thanks for the video. Does that mean you file one return for your full-time job and file a second return as a sole prop for your trading? What if you do not day trade but swing trade options and futures? Do you still file as a sole prop

[@igor-Light111]

Useful information, thank you humble trader I think we met in the past when serman organized party for traders anyway good luck in your business!!!

[@crazytiger358]

Your information good thanks you I am Indian trader

[@TheMontegonian]

What’s the purpose of incorporating when any money that you “save” is just being parked? Unable to be used unless you want it taxed.

[@harryrei5951]

what trading platform would you recommend? Canadians seem having less options

[@trickshady2]

Please make a video for the US taxes!!!

[@elizabethbottroff1218]

It doesn't help me with the IRS in the USA. But this is a great video with a lot of information given in an entertaining way. I hope that many of your Canadian viewers heed your warnings.

[@faisal-ca]

When I talked to CRA , they said if you are not sure if you are day trader or investor, file as an investor (capital gain) and we will inform you if its otherwise.

[@jason-ub8qz]

You can keep but you will pay any time you withdraw something that would be double tax

[@tinaguo3128]

Thanks so much!

[@casanova1012]

Great stuff

[@DR4MAcydal]

Great video. I wished I knew this when I first started. Bravo shay.

[@moxiangmingxin]

Hello, do I need to register with CRA or any government agents for creating a Sole proprietorship trading business? Thanks

[@TraderNatca]

Hi! Have same question here. Did you find an answer to your question..? I just started making income from trading, cant fugure out if I need to register sole proprietorship.. registration costs 60cad only, but this means receiving some other SIN code (BIN).

[@SiuuuKlips]

Hello, have you ever made any video about LEVEL II?

[@SiuuuKlips]

@@HumbledTraderOfficial I have found it and watched the video. It was well developed. Thank you for the knowledge.

[@ibraheemali9541]

7:00 what is the definition of a "small business"??? restrictions based on # of employees? or a particular income per year or both?

[@brandonrav3536]

Both

[@diegodgx]

This video is great, very well explained and I liked the examples. Helped solve some of my questions, also from Vancouver :). Cheers!!

[@4evervacation]

love your humor!!! :):)

[@RantingOgre]

As a Canadian, if you are in the position to form a corporation, why would you form the corporation in Canada? Why not a more tax friendly country such as Bermuda?

[@dkpalta6064]

can you suggest any CPA for day trading in Vancouver??

[@vavalakes4210]

AWESOME!!!

[@ibraheemali9541]

0:59 another way for tax deductions is warren buffet way.....go long.....buy good potential companies at cheap price , hold and reinvest dividends......for ever.....its investing.....not trading though

[@joegallego7490]

thank you

[@mikeb6354]

that was fantastic

[@netanelOnline]

Mike Bagholder is a lucky guy

[@hydrotzu6522]

I love your sense of humor 😂

[@acadian101]

when you pay only 11% in taxes , that means most of the profits stay in the business account , you will then get taxed on it when transferring it into your personal account

[@lgnaclo]

Thank you HT.

[@therealjohnnyb2151]

Could your corporation buy the home as a rental property and you, as a human, rent it from the company?

[@dannytetreault]

Dear HT. Do you live in Canada? I live in B.C. on Vancouver Island 🏝️. My dream is to become an options trader.

[@MKI4EVA]

Good info thank you 🙏🏻

[@DavidVlogz]

Great video especially for beginners

[@irsqpets]

Wish you did this in the USA

[@Pr3tti]

You're sooo pretty jiee!!

[@omarnycity1]

😍 amazing 😍

[@mikemiller347]

This is a comment for the algorithm. Go Vancouver Canucks!

[@simplyselling]

That was a great video. I'm planning on trading this year and often wondered what the best option would be. My goal is to trade for a prop firm and my own personal account. Thanks for sharing. Ontario🙂

[@vid8899]

How much tax we pay on the trading loss?

[@johndoe42373]

Can you recommend someone to do taxes for a day trader in the Vancouver area please? Having trouble finding someone

[@michellen6426]

in your exampke, you say hold tesla at 3 year, is there a time limit where it will count towards capital gain?

[@Camille_Boomer77000]

Thanks a million for making this video. Once again this is VERY helpfulness. Cheers also from Vancouver 🇨🇦

[@uabir8338]

Amazing video and it was very funny. On a serious note, if you are making that much money, you need to GTFO of Canada and into the States where you pay much less taxes. I started day trading last week and this was helpful. (not gonna make 6 figures any time soon, but when I do, hello U to the S to the A!!!)

[@michaelshih8163]

You didn't know that profit that your personal corporation makes is not your money. You can take it out only if the corp. pay you a dividend. And Dividends are taxed at the personal tax rates.

[@JavierMartinez-um1te]

Awesome video ! Do you need a gst#? Or just file taxes as self employed.

[@HumbledTraderOfficial]

Just self employed 👍

[@thisisnotpublic6569]

Incorporating isn’t as great as painted on this video. In the best scenarios you would have saved like 5% overall in taxes, so it’s not a huuuge difference like said here. Commonly you will have to pay yourself a salary (due to banks in Canada, otherwise you would have a hard time getting credit cards and such) and then on top of that you would be paying yourself ineligible dividends, so quickly some of the benefits talked about here will fade away. There isn’t a way to run away from taxes in Canada, the whole taxation system is just insane. I just wished more would be offered to the population based on such huge price we have to pay for (I ended up moving my business to another country)

[@yujial.3557]

One thing I don't understand: why not use your original country as a shield to save the gains to avoid st🇨🇦ip tax in Canada

[@netanelOnline]

cool. long way the road...

[@diegoramos27]

What if I haven’t made anything but loses? Do I have to pay for my loses? Thanks

[@taowang2326]

I want to know too, do you have the answer now? Ty

[@Whiskers_19]

can i trade indicies in alberta?

[@beauchampfrancois151]

Always loved your videos... this one is the most useful so far, lol. Thank you for educating me.

[@katmarcoux5332]

Well explained! TY :)

[@spinity8468]

@HumbledTrader Are you from Canada?

[@je189]

Hello Humbled Trader, could you pay for market data on another platform instead of using the one on your brokerage to save a lot more money that way if it’s cheaper? I’m assuming that’s possible. P.S Canadian here that loves the content 👌🏾 11:04

[@humbledtrader169-Gmail-.-]

⬆️Directly get in touch with me!!❤

[@haywood12]

Me and bagholder mike are best friends now

[@haywood12]

@@HumbledTraderOfficial Nahh we walk. no space in the lambo for all them bags🙃 There are so many insta accounts that one gets confused.

[@raka2227]

Just love your vids!!!! You your content very informative with a pinch of humor…. Keep it up.

[@ReneBold]

Forgot a very important number! $7000 !!! That's how much you could save on CPP contribution when incorporated. If you are really serious about trading and making 6 figures you can probably cut yourself loose from the CPP! Investing those $7000 a year will bring you more than what you would receive when you retire.

[@jason-ub8qz]

Are you joking why would anyone one incorporate and pay double tax. You have to pay corporate tax and income tax

[@Steve-ny7ez]

Thank you, this was great information.

[@44toronto68]

What about GST.. I heard it is 13% in Canada

[@InnerMoonTrading]

do you know if i can deduct my books, (rich mindset, self development etc), it can help me grow my income right?

[@Osteomorphis]

We did last year for the new computer and books. Part of Schedule C, I believe.

[@DrewAk49]

Love you 😂

[@arnaldoestevestj]

Thank you for the video🔥🔥

[@wulfW]

Since the 11% tax rate only applies to the first $500k, would you be able to simply open another, second corporation and have the next $500k also taxed at 11%?

[@humbledtrader169-Gmail-.-]

⬆️Directly get in touch with me!!❤

[@lalipop241]

no, unless business is opened on someone else name

[@rahilgillani4143]

what if one is working from home full time, and trades in the morning 1 hour. can a person open sole proprietorship still for trading business?

[@benh5774]

great video, can you just use the profits from your corporation to buy a "corporate house" that you live in?

[@paniaz2024]

Omg you are reading my mind. I am thinking this frequently these days but couldn’t find a good video to do the tax planning. And you finally post this!

[@newjob8047]

Hey Shay, it's a good timely continent. I think also need to addres the 90% who tried to trade and lost, how they can claim their loss in their tax return .

[@Osteomorphis]

Are you in the U.S.? It's on the Schedule D worksheet like with gains. Some of the loss will be deducted from your other gross income. For instance, if you make $70k on your full time job, you'd be taxed for the $70k. But if you lost $5k last year as a day trader, you will pay $65k worth of taxes. Fill out the Capital Loss Carryover worksheet in the Schedule D instructions.

[@newjob8047]

@@Osteomorphis Thanks Matt. I just raised general question that can possibly help others as I'm seeing not addressed most of the time.

[@marksonmars]

What happens if we didn’t pay taxes ?

[@Exzal123]

In Québec for to have access to the program you speak of, we need to have 5500 hours done by the employees... Well that sucks ahahahah, we're so afraid of money here.

[@humbledtrader169-Gmail-.-]

⬆️Directly get in touch with me!!❤

[@zacharyg7131]

25% in Cali for me

[@spainlife4259]

In spain tax very high

[@SM-yg2mo]

Love your video's..... you make the fun

[@malawigold747]

Can I borrow money from my corporation? (At no tax?)