You know that only half of your capital gains are taxable in Canada?
If you make a $1,000,000 in profit with crypto, you only have to tax $500,000 of those.
Last year in February I cashed out $120,000 in capital gains through stocks. Only $60,000 were taxed at a rate of about 40%. So on $120,000 in capital gains I paid around $25,000 in taxes.
You may have a 50% tax rate on your capital gains if you make millions, but only on one half of your capital gains. The other half is tax free.
Also you can claw some of that back next tax return by dumping the profit into an RRSP to the maximum accumulated contribution room.
Then on that next tax refund, use THAT to use for next years RRSP. Also don’t forget one can get a lot of tax free income from Canadian dividends every year. The amount of folk out there that don’t know how to use the rules in their favour is staggering. (Not a dig against the OP, just a general Joe Public obversation)
50%??
You know that only half of your capital gains are taxable in Canada?
If you make a $1,000,000 in profit with crypto, you only have to tax $500,000 of those. Last year in February I cashed out $120,000 in capital gains through stocks. Only $60,000 were taxed at a rate of about 40%. So on $120,000 in capital gains I paid around $25,000 in taxes.
You may have a 50% tax rate on your capital gains if you make millions, but only on one half of your capital gains. The other half is tax free.
https://www.wealthsimple.com/en-ca/learn/capital-gains-tax-canada
Also you can claw some of that back next tax return by dumping the profit into an RRSP to the maximum accumulated contribution room.
Then on that next tax refund, use THAT to use for next years RRSP. Also don’t forget one can get a lot of tax free income from Canadian dividends every year. The amount of folk out there that don’t know how to use the rules in their favour is staggering. (Not a dig against the OP, just a general Joe Public obversation)