[MMAK40]

Hi to all

I have a client did day trade in 2010, so how do I report his profit/loss in 2010 T1?

Thanks

MM

[Reg]

I don't have time to look it up right now, but it seems to me that a day-trader is classed as being in business (forget the exact phrasing used), so T2125.

[MMAK40]

Reg, on 06 April 2011 - 05:37 PM, said:

I don't have time to look it up right now, but it seems to me that a day-trader is classed as being in business (forget the exact phrasing used), so T2125.

Thank you
Please also kindly advise me what industry code I should use for day trader in t2125
Best regards
MM

[Arliss]

MMAK40, on 06 April 2011 - 10:02 PM, said:

Thank you
Please also kindly advise me what industry code I should use for day trader in t2125
Best regards
MM

Here we go again. Who wants to hold the hand?

[spenceh]

MMAK40, on 06 April 2011 - 09:02 PM, said:

Thank you
Please also kindly advise me what industry code I should use for day trader in t2125
Best regards
MM

Go to T2125, F6 on Industry code and find the one that best describes your client's situation.

[ChrisG]

MMAK40, on 06 April 2011 - 02:37 PM, said:

Hi to all

I have a client did day trade in 2010, so how do I report his profit/loss in 2010 T1?

Thanks

MM

To begin with, are you sure your client is in fact a day trader? Is that how the client filed last year? Filing a T2125 may not be the correct or appropriate approach here. You would be wise in reviewing the literature on CRA's position on capital gains and how they determine whether the gains are subject to full taxation. Have you discussed with your client the option to make an election to treat all transactions (in Canadian securities) as capital? You can do this by filing form T-123 Election on Disposition of Canadian Securities.

[MMAK40]

ChrisG, on 07 April 2011 - 01:22 AM, said:

To begin with, are you sure your client is in fact a day trader? Is that how the client filed last year? Filing a T2125 may not be the correct or appropriate approach here. You would be wise in reviewing the literature on CRA's position on capital gains and how they determine whether the gains are subject to full taxation. Have you discussed with your client the option to make an election to treat all transactions (in Canadian securities) as capital? You can do this by filing form T-123 Election on Disposition of Canadian Securities.

Thank you very much for your advice
My client did trading more than 700 a year for just buying and selling stocks and kept them in very short period.
Last year his ex-accountant treated them as a capital nature and typed a long list of transactions. I don't think the nature of those transactions were captial. Besides, he had no job and sat at home just for trading.
He traded not just Canadian stocks but also US stocks so T123 Election can't be used.
I am doing more research. If it is business nature, what industry code # is suitable to day tarder. I check all the codes but I don't see any fit well to a day trader. Please advise
Many thanks again
MM

[ChrisG]

http://stds.statcan....asp?criteria=52

[buck512]

Hello to all, I am relatively new to posting on this forum because I do not want to feel intimidated by asking foolish questions and take valuable time away from the learned Pro's that post here. Please bear with me. I understand that MMAK40 who posted to this thread records a lot of stock trades and I was wondering if there is or where could one find a program that tracks stocks other than having the client do this. The program could be a spreadsheet or something of that nature. It would maybe be easier than pouring over the Summaries given from say TD Waterhouse. It would save time going back to previous years to get the ACB figures and carry them forward each stock at a time. Can anyone recommend or advise to how they handle a large amount of stock trades over the years? Help is appreciated. Thanks, Steve

[Dink Meeker]

Like myself, most on here will probably tell you they use a spreadsheet, however I do have a client that tracks his own trades with a little app called Fund Manager. He seems to be quite happy with it.

On a side note..... you'll probably get more responses with a less confrontational opening line.

[buck512]

Thanks for the quick reply Dink M but I wasn't trying to be confrontation. Sorry about that. I'll look into some sort of Fund Manager software if it is available. Thanks again!

[Reg]

Buck:
Spreadsheet for sure.
Over the years I have tried a number of "fund manager" type of systems - although not for 4 or 5 years now - and always come back to a simple spreadsheet

[buck512]

Thanks Reg, That will save a lot of searching for different fund managers, and your right that would probably create another learning curve especially for myself. Spreadsheets are it but that's another story. Maybe, Dunner can come to the rescue.

[Reg]

buck512, on 09 April 2011 - 06:46 PM, said:

Thanks Reg, That will save a lot of searching for different fund managers, and your right that would probably create another learning curve especially for myself. Spreadsheets are it but that's another story. Maybe, Dunner can come to the rescue.

Tracking ACB is a pretty simple exercise on a spreadsheet. Let's keep Kevin for when we really need him

[buck512]

Reg, on 09 April 2011 - 10:10 PM, said:

Tracking ACB is a pretty simple exercise on a spreadsheet. Let's keep Kevin for when we really need him

Yep, your right again Reg