[Day trading]

1 minute ago, TheTaxSmith said:

Yep

Appreciate it! many many thank.

 

[Day trading]

2 minutes ago, TheTaxSmith said:

Hey Zach.

Moving forward you will report it as a business. If however you decide to engage a broker to manage your file you can resort to the capital gains/losses using Schedule 3.

Just as an add on. Over the years I have watched so many people lose money doing day trading. It requires skill, knowledge and discipline. I usually suggest going for the long haul. Take a look at bank stocks. They double every 5 to 6 years plus pay nothing less than 4% in dividends.

Many thanks for your reply. 

So just to make sure, if I do report it this year as business (have all the documentation) CRA will either accept my reporting (and maybe ask for documents) or reject it and reassess it as capital loss. I mean no further consequences.

 

Good suggestion re: bank stocks. Something to consider this year.

 

Thanks again.

[Day trading]

Thanks for your reply.

Indeed this is what I want to avoid. So in 2019 I had some insignificant trades, ended up having minor losses. I mistakenly reported my losses as (capital gains, in other words 50% of it was consider income, however it was actually losses) but didn't bother to fix it after assessment as it was minor and did not really change my tax return.

In 2020, my losses were actually significant and I traded often. I managed my trades myself (didn't have a broker managing my account). 

I feel I should report it as self employment this year (and moving forward if any in the future).

 

Will I face any issue doing this? if so what would be the consequences? will CRA just change my reporting and assess it as capital losses, or there will be other issues.

 

I have full documentations of all of this.

 

Thanks 

[Day trading]

Hi,

I plan to report my day trading as self employment. I have statement from my broker shows all my gains and losses.

 

Some people suggested that I report it as capital gain/losses, but I think my losses in 2020 represents significant part of my income.

 

Will I face any issue if I report my losses as self employment income?

Thanks