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db082433
New Member

Review northern residency and stocks

 
1 Reply

Review northern residency and stocks

   If you are a resident of northern Canada in a specific zone A, you could qualify for tax deductions such as residence deduction and travel deduction. For the basic residency amount of $11, the CRA can support you by an additional residency as the same amount of $11 per day if you maintained and lived in a self-contained dwelling (complete and separate living unit with kitchen, bathroom, sleeping facilities, and own private access). However, you must be the only person in your household who is claiming this deduction to be eligible for the increased amount. You can check the link here from the CRA for more details in the T2222 form.

    In addition, if you're buying securities (like stocks) as an investment, you should generally report the transactions as capital gains or losses. If you're buying and selling at a profit on a regular basis, though, your transactions should be reported as business income.
   For the tax planning, It may be more advantageous for you to claim the additional amount rather than having two or more persons claim the basic residency amount, then you could pay less taxable amount since you make a huge profit.