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Help with filling T2125 for DayTrading, Confusion with Opening/closing inventory fields

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Hello, I am day trading.  I need some help filling FORM T2125. 

Background info: 
From my broker, I got summary which has
Cost or Book Value = $300,000
Proceeds of disposition or settlement amount = $295,000

So I made loss of $5,000

How I filled/ need help 
1. Under Identification, NAICS code I used 523990 (All other Financial instrument Activites)
2. Under Income/Expenses -> Business Income -> Gross Sales, commissions or fees = $295,000
3. Under 'Cost of Goods' there's 'Opening Inventory' and 'closing inventory'.  Where do I enter my $300,000 amount.  Should I just enter in 'opening inventory'? and leave closing inventory empy? 

Are these the only main fields I should enter. Assistance would be appreciated. Thanks 





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Hello Marko,

Day trading Example 2125 Note : please consult with an accountant
Note that do not get Capital Gain 50% Inclusion
>>Gross Sales

>>Cost of Goods Sold (COGS)
 *Opening inventory
 *Purchases during the year
 *Closing inventory



You don't need to determine the ACB for thousands of trades - you just need to know the ACB of the positions held at the beginning of the year "opening inventory' and end of year "ending inventory". Your Cost of Sales from the trading business will be Opening Inventory + purchases - Ending inventory.

----FYI daytrading  forum-------


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Thanks, for your assistance. 

In your example, what is opening inventory and ending inventory amounts?  Is it last year's carryover amounts i.e positions held from last year like bought 50 shares of apple?

For me,  I close my position within same day,  and didnt have any positions from last year. Do I just put opening and closing inventory to 0? 


So to summarize: 

1.Under Income/Expenses -> Business Income -> Gross Sales, commissions or fees = $295,000

2.. Under 'Cost of Goods'
'Opening Inventory' =0
Purchases = $300,000
Closing Inventory =0

3. For NAICS code, I googled and using 523990  All Other Financial Investment Activities.  Is this one recommended for trading stocks, futures, options? 



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5 hours ago, Geo123 said:

Hello Marko,

You are welcome.  Please consult with an accountant, this forum does not provide tax or accounting advice.  The NAICS code can be confirmed with the CRA.

OK,  let my try asking a generic question. Not specific to me then.  

1. What is the opening and closing inventory in the example that you provided?  Is it carryover investments from last year?
2. What are the purchases?  Do they correspond to the stocks purchased during the year?


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Dealing with T2125 forms can be a real headache, especially when it comes to day trading. I remember feeling lost with those inventory fields too. But hey, once you get the hang of it, it's not so bad! And hey, if you're looking to streamline your trading process, have you considered using quantum ai technology? I've heard it's like having a supercharged assistant managing your trades, making everything a whole lot smoother.

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