Tax

Securities transactions: the traditional test of income vs. capital account classification

Traditional test used by the courts to distinguish between securities transactions on income account and those on capital account:

The elements of the traditional test include:

(a) frequency of transactions;

(b) period of ownership;

(d) security transactions forming part of the taxpayer’s ordinary business;

(e) time spent researching securities markets and potential purchases;

(f) the extent to which debt financing is used;

(g) advertising; and

(h) in the case of shares, whether they are speculative in nature or dividend-paying.

Disclaimer:
“Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as of the date of posting and is not intended to provide legal advice. It's always recommended that you consult with a professional accountant and lawyer for personalized guidance and advice."

Prepare for the current tax season in Canada with our services, including Income Tax, Accounting, and Bookkeeping

Ensure accurate tax reporting and compliance with our comprehensive services, covering T1 Personal Tax Returns for businesses, contractors, real estate investors, individuals, non-profits, and foreign income reporting, along with T2 Corporate Tax Returns, GST Returns, T4 and T5 Filings, and Payroll Management. Get in touch with me to discover strategies

Restricted Stock Units (RSUs) - tax implications for Canadian employees

Explore the tax implications of Restricted Stock Units (RSUs) for Canadian employees, from grant to sale, including taxable benefits, withholding taxes, and reporting requirements.

Important Tax Reminder for Teens: Understanding Your Filing Obligations

Discover the tax obligations teenagers face in Canada, including filing requirements and exemptions for various income sources. Gain insights on navigating their first tax return with ease.

Read next