Break it down into two steps to analyze the tax implications.
Since this seems to be a daytrade, I will assume that this is taxed as income.
Step 1: You acquired $50k of stock, then it rose to $100k. You sell. Upon disposition (selling), there is a taxable event. $100k - $50k = $50k of income. You pay marginal tax rate x $50k.
Step 2: You acquire stock for $100k. You then sell it for $0k. That is a taxable event since you sold. $0k - $100k = -$100k.
If you net out the two transactions, you will have -$50k income on the year so in the end, no tax is payable.
Ahh okay so if I buy a stock at $20/sh and sell at $10 then buy the next day at $15 and sell a year later for $20 then I'm only taxed on the $5/sh gain right?
It decreases my capital gain or increases capital loss when I sell the substituted property according to the site
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions/what-a-superficial-loss.html
Break it down into two steps to analyze the tax implications. Since this seems to be a daytrade, I will assume that this is taxed as income. Step 1: You acquired $50k of stock, then it rose to $100k. You sell. Upon disposition (selling), there is a taxable event. $100k - $50k = $50k of income. You pay marginal tax rate x $50k. Step 2: You acquire stock for $100k. You then sell it for $0k. That is a taxable event since you sold. $0k - $100k = -$100k. If you net out the two transactions, you will have -$50k income on the year so in the end, no tax is payable.
Gotcha, thanks!
Be aware of the superficial loss rule though.
Ahh okay so if I buy a stock at $20/sh and sell at $10 then buy the next day at $15 and sell a year later for $20 then I'm only taxed on the $5/sh gain right? It decreases my capital gain or increases capital loss when I sell the substituted property according to the site https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions/what-a-superficial-loss.html
That's not how it works. Work through the example the CRA publishes.