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Social media-driven trading frenzy has tax implications


The basics
Okay, first things first. The term “day-trading” doesn’t appear in our tax law. And who, exactly, is a day-trader? It’s not clear. But there are some principles that have been established by the courts that the Canada Revenue Agency (CRA) follows, and that we should look at.
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When an investor sells a stock or other security, and makes a profit, it will be taxed as either a capital gain or regular income. I’m talking about dollars invested outside of a registered plan such as a registered retirement savings plan or tax-free savings account. Profits inside those plans are typically tax-deferred or tax-free ....

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