# Tax for Day Trading



## becool (Jan 20, 2017)

can any one tell me which tax form to fill for day trade US stock?

i made about 300 trade for the year no dividend/interest..etc just pure capital gain 

do i have to file all form S3(T1?), Schedule D, form 8949, 1099-B, T5, T5008 ?

any useful info will be appreciate

this is my first time doing tax for trading stock so i dont want screw up


----------



## AltaRed (Jun 8, 2009)

This may not be capital gains. CRA may see that frequency of trading as a 'business' rather than an investment... in which case, you will have operating income and expenses, not capital gains. I believe this has been discussed before.


----------



## becool (Jan 20, 2017)

then which tax form should be file? i google a lot and saw lot people say if you didnt get elect by CRA as Mark-To-Market then you just count as pro investor not day trader business

i found this on Tax support




Claiming Capital Gains

When day-trading profits do qualify as capital gains, the resulting amount is reported annually with your income tax return.

"When declaring capital gains from any disposition of capital properties, you report these earnings using Schedule 3, which also covers other income sources that may not apply to you," says Brent Allen, regional director, certified financial planner and financial management adviser with Investors Group in London, Ontario.

Schedule 3 totals all income sources eligible for capital gains and losses, and then takes half this amount for entry on line 127 of your federal tax return.





if i have misunderstand anything please let me know


----------



## AltaRed (Jun 8, 2009)

If you believe your day-trading profits qualify as cap gains, then by all means use Schedule 3. You will have to sort out any possible superficial losses in your calculations (Google CRA Superficial Losses for the rules). For any one stock that you daytraded, you can work out the aggregate number and enter it only once.


----------



## OhGreatGuru (May 24, 2009)

becool said:


> ... *When day-trading profits do qualify as capital gains*, the resulting amount is reported annually with your income tax return.


You missed the key phrase. Which is what Altared was alluding to - you may be classed as "in the business of trading". But file a complete report of your 300 trades, claim the net as capital gains, and see if CRA agrees with you.


----------



## AltaRed (Jun 8, 2009)

There is lots of discussion via Google on this point. This http://taxtalk.hrblock.ca/how-to-file-credits-deductions/general-tax/onlinetrading/ is but one example. Another is http://www.advisor.ca/news/industry-news/when-trading-profits-are-income-119954

Without more knowledge we can't comment further, but my speculation is that it is more likely capital gains income rather than buisness income.


----------



## lonewolf :) (Sep 13, 2016)

Do not deduct expenses for trading. Will increase odds of being declared as business if start deducting expenses.


----------

