I have self directed investment accounts for my RRSP. TFSA and RDSP. I have been lucky to be quite successful and as an example have capital gains of over 600k this year. It is passive income and I do not day trade.
Is my investment income going to impact my ability to get LTD?
They also want me to apply for CPP disability. I am concerned that I may have future issues with revenue Canada if I start getting CPP disability.
Part of the issue is that my tax returns qualifies me as a low income person because I only make taxable income of less than 30k because all my investments are tax free or tax sheltered. On average I usually make about 400k to a million in a year.
Any advise regarding investment income and employer and government benefits?
No. The only time I was questioned was when the income came from my employer, but since it related to stock options that were issued before I became disabled they closed the inquiry.
Why would getting CPPD create issues with Revenue Canada? CPPD is just insurance that is mandatory to buy. It’s only income from working that matters.
I heard that they consider trading stocks to be work depending how much you do it. I don’t really know what that threshold is. I heard that in some cases they go after you if you have big trading profits even if you don’t daytrade. (at least in TFSA’s)
If you’re doing it enough to be a business/work then your capital gains would also turn into regular income. If you are being accurate about it being passive income with no day trading you should be fine. If you have doubts about crossing that line then talk to your tax lawyer and accountant (or just do less).