[ChineseGuy]

I was wondering what the tax rates are for stock investments....

A year ago i've got some extra cash lying around, so i just purchased some stocks from overseas, and i'm planning to sell it very soon, and i basically earned 1 thousand from it...and 70 bucks from dividends...

I was wondering how much would I be taxed upon?...

[islandbimmer]

the effective tax rate would be 17% on the capital gain of 1000

[ChineseGuy]

wow...giving the gov $170....

PS: Would there be a chance I can be qualified for a tax deduction somehow?

[samej]

Taxes on capital gains are 1/2 of your federal tax rate. not sure what bc does for it's cut (in ontario they just go with a % of the fed tax). Dividends are "grossed up" and taxed at a lower rate as well but with foreign dividends it's pbbly not worth the extra paper work.

Any taxes withheld by the foreign country are typically deducted against canadian taxes owed (we have treaties with major countries).

[Tonybest]

Originally Posted by samej

Taxes on capital gains are 1/2 of your federal tax rate. not sure what bc does for it's cut (in ontario they just go with a % of the fed tax). Dividends are "grossed up" and taxed at a lower rate as well but with foreign dividends it's pbbly not worth the extra paper work.

Any taxes withheld by the foreign country are typically deducted against canadian taxes owed (we have treaties with major countries).

Very good answer... Half the gains are taxed at your effective tax rate. We cannot evaluate your tax rate, since we don't know where you live and how much revenue you make a year...

If you are a non-working student, you might be taxed at 0%. If you make 100k$ a year, you might be taxed on half the gains (500$) at anywhere from 40 - 48% depending on Province of residence. But if you have paid taxes in another country, those will be deducted from your taxes over here.

dividends are also taxed higher than capital gains but lower than interests

[Tonybest]

Originally Posted by islandbimmer

the effective tax rate would be 17% on the capital gain of 1000

I really think it will be more than that.

1000$ gains ... declare 500$ (the half)
multiply by your tax rate (total for Prov and FED)

17% is abnormally low.

If you don't make any revenue whatsoever, than 17% might be high.