Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted May 9, 2021 1:30:34 PM

Do we have short and long term capital gain taxes?

Hi all! 

I have a trading margin account and I'm wondering does the length of my securities holding matter for tax purposes?

I'm aware of capital gain taxes but let's say I hold a security for a month and another security for longer than 3 or 6 months in my margin account, would I pay the same taxes on both of them or less taxes on the second security cause I hold it longer? 

 

 

Thank you

0 1 407
1 Replies
Level 2
Nov 18, 2021 12:51:18 PM

   According to CRA, short and long-term capital gain taxes are not available in Canada but they are considered in specific cases.

 Your margin account could be treated as the same as a regular trading account that is considered an unsheltered accounts (regular and margin). Dividends, interest, and other payments paid to you as a result of holding shares will be reported on a T5 or T3 slip from your brokerage and will show on your tax return each year.

   In addition, it is possible for a taxpayer to have certain capital securities transactions and other income securities transactions in the same year however the CRA looks at several factors to consider if a taxpayer is in the business or capital income. A day trader, for example, could have two investment accounts: one for day trading and the other for long-term investments that are not regularly traded.

    You should check the link here for more details.

If you require further assistance please contact our phone support team for further assistance or contact us directly on Facebook or Twitter.