overseas employment tax credit canada
Capital Gains Tax – Sell and buy immediately – impact?
I am currently a resident of Canada (fiscal), but I'm working outside Canada on an engineering project. I eligible for Foreign Employment Credit (T626), so my current tax rate is excellent (not pay provincial taxes, reduced the rate of U.S. dollars). Because of this tax, I want to sell my current holdings (shares dollars) to create capital gains and immediately to repurchase the same stocks … Does the 30 days rule apply, or applies only in the case of capital losses? Any other rule I have to be aware in my case? Thanks!
No, there is no reference in the ITA to discuss specifically what is essentially a superficial gain (as opposed to the superficial loss rules). The other rules can only be considered for Combating Prevention Regulations under Section 245 of the Act on income tax and that the only reason of this transaction is tax related. IC 88-2 has more information. I do not think you are really avoiding tax in this case, no But just taking advantage of the tax rates that are currently subject, like if you moved to the lower tax rate province (Alberta) and some operations there. You sure are not subject to provincial sales tax? Residents file the tax return of the province that have more links with (if not actually live in a province in December 31). considered residents actually have to pay a surcharge to compensate for the fact that the province does not pay taxes.
Thomas Sowell on the Housing Boom and Bust
