Team Taxman

Canadian Tax Reality Check 🚨

Client:
“So I donated $2,000 to my friend’s GoFundMe… how much do I get back on my taxes?”

Me explaining to them that a GoFundMe is usually NOT a charitable donation according to CRA:
In Canada
Most GoFundMe contributions are:
❌ NOT tax deductible
❌ NOT eligible for donation tax credits
❌ NOT considered official charitable donations

Unless the fundraiser is connected to a registered charity with official donation receipts… CRA does not care how emotional the story was 😭

Moral of the story:
Being a good person and getting a tax deduction are not always the same thing.

DAY TRADING INCOME — IT’S NOT ALWAYS CAPITAL GAINS

Think your day trading profits are taxed at 50%? Think again. ⚠️

If you're actively buying and selling stocks, your earnings may be treated as BUSINESS INCOME — not capital gains.

Here’s how the CRA looks at day trading:

🔍 You may be considered a business if you:
✔️ Trade frequently
✔️ Hold stocks for short periods
✔️ Use advanced trading tools or strategies
✔️ Spend significant time trading
✔️ Rely on trading as a source of income

💰 If it's BUSINESS INCOME:
• 100% of profits are taxable
• Losses may be fully deductible
• You may need to report income as self-employed on your T1

📉 If it's CAPITAL GAINS:
• Only 50% of gains are taxable
• Capital losses can only offset capital gains

⚠️ Many traders assume capital gains — but the CRA may disagree.

Before filing, make sure your trading activity is classified correctly.

📩 Not sure how your trading income should be reported?
We can review your activity and help you file it the right way.