Considering their existing connects to Canadian market, it seems strange that IB does not support Canadian retail market ...
django:no, i haven't sold stock short but i have bought and sold stock options. if revenue canada decides to tax me as income,thats fine but so far they haven't said anything.i probably haven't made enough money for them to notice is all i can think of.i don't know.
From reading this thread it appears that I can file my net loss for this first year of trading as a business loss, since I sold short and traded futures. And I can deduct it from my salaried income, together with trading-related expenses. Can anyone confirm this? I trade with IB and they don't issue any tax forms to Canadians. Do you just include the monthly/yearly statements with the return? Also, do you report your gains/losses for the calendar year, or up until April? Thanks, vorzo
Yes, you should be able to deduct trading losses and overhead costs against regular income. You don't have to include statements and such with your return, but you have to retain them in case the feds ask to see them. If you are an unincorporated business, you must use Dec 31 for your fiscal year end. Just remember 3 day settlement for the last few days of the year (ie. trades done on Dec 30 will count for the next year) I found the file I had saved that deals with trading as a business. It's an interpretation bulletin issued by CCRA several years ago.
I'm still confused on the basic issue of- if I'm a Canadian citizen doing full time trading with IB Canada but only trade U.S securities with a US funds account, am I paying taxes to Canada, U.S. or both? jim
Brother Corey, thanks for making it clear. jvasto, I think you file in the U.S. only if you trade with a prop firm, otherwise it's country of residence.
You guys in Canada actually do your own taxes? LOL I once offered to help a relative with their taxes in Canada since I do my own and my parents in the US. I was shocked to see their previous year tax returns look as thick as a telephone book. LOL I quickly declined to help and suggested a professional. The same return here in the US would have been no more than a few sheets. Looks like they need a paper reduction act.