Hi,
Since day-trading is ill advised with TN/TD status... What about day trading on a US exchange account (cash and investments are in USA) but doing so in Canada as a non-resident. Is this taxable in Canada?
Since the sales are in Canada.. No canadian income is generated... But the work is performed in Canada. Any ideas?
non-resident day trading
Moderator: Mark T Serbinski CA CPA
Not sure what you are meaning.
You are working and living in US (on TN and TD), but you propose to go physically to Canada and day-trade?
Assuming this is physically possible, then, since this would be considered self-employment with no fixed base in canada, then as long as you spend less than 183 days in any 365 day period in Canada, it would only be taxable in US.
Would this really be day-trading? And if it wasn't, then why go thru the bother of crossing the border. Investing, even aggressively, is allowed on TD/TN, as long as you don't act like , or become defined as, a day-trader.
You are working and living in US (on TN and TD), but you propose to go physically to Canada and day-trade?
Assuming this is physically possible, then, since this would be considered self-employment with no fixed base in canada, then as long as you spend less than 183 days in any 365 day period in Canada, it would only be taxable in US.
Would this really be day-trading? And if it wasn't, then why go thru the bother of crossing the border. Investing, even aggressively, is allowed on TD/TN, as long as you don't act like , or become defined as, a day-trader.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Hi, I am in USA on TN. Wife is on TD. We are 100% USA residents.
If she were to do a lot of trading in USA we are concerned she could be classified as day trader. When green card comes around, we are worried that USCIS may start asking lots of questions.
She can commute to Canada daily to trade (seems crazy), but would still be selling on a US exchange .
If she were to do a lot of trading in USA we are concerned she could be classified as day trader. When green card comes around, we are worried that USCIS may start asking lots of questions.
She can commute to Canada daily to trade (seems crazy), but would still be selling on a US exchange .
By commuting to Canada daily, she will run the risk of being considered a deemd resdiwnt of Canada. She will need to keep meticulous records of her time in Canada. She must not spend more days in canada than 3 a week.
And remember, that is you should ever try to get GC, she (and you) will be trapped in US for at least 3 months before she gets her EAD.
And remember, that is you should ever try to get GC, she (and you) will be trapped in US for at least 3 months before she gets her EAD.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
The gains are not sourced in US or cxanada based on where the brokerage is. They are sourced on (a) where you live, or in self-employed case (b) where your fixed base is.
So, in order for her to be considered as not resident in Canada AND not to have a fixed base there, she needs to not be in Canada 183 days in ANY 365 day period. the best way to do this is to never exceed parts of 3 days a week in Canada. And don't forget vacations i ncanada, part-days in Canada.
Is it really worth the effort, considering thatit is unlikely that (a) she will be considred a day-trader, and (b) even less likley that immigration will ask about it?
By the way, if immig suspects she was working, be prepared to prove that she was in Canada trading, which might be difficult.
All-in-all, I wouldn't be going thru these hoops. Save her gas and trade from home.
So, in order for her to be considered as not resident in Canada AND not to have a fixed base there, she needs to not be in Canada 183 days in ANY 365 day period. the best way to do this is to never exceed parts of 3 days a week in Canada. And don't forget vacations i ncanada, part-days in Canada.
Is it really worth the effort, considering thatit is unlikely that (a) she will be considred a day-trader, and (b) even less likley that immigration will ask about it?
By the way, if immig suspects she was working, be prepared to prove that she was in Canada trading, which might be difficult.
All-in-all, I wouldn't be going thru these hoops. Save her gas and trade from home.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Question about your comment that "They are sourced on (a) where you live, or in self-employed case (b) where your fixed base is. " :
Does the treaty not override this? ie. if she clearly is a resident of USA?
From CRA's website:
"If you soujourned in Canada for 183 days or more (the 183-day rule) in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country, you may be considered a deemed resident of Canada."
Does the treaty not override this? ie. if she clearly is a resident of USA?
From CRA's website:
"If you soujourned in Canada for 183 days or more (the 183-day rule) in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country, you may be considered a deemed resident of Canada."