Day trading – tax implications
As a day trader, you will need to calculate your total income or loss for the year. The process is similar to filing business income. In fact, any assets you own are treated as inventory until sold.
Your income from day trading is fully taxable at your nominal tax rate. That is because it is classified as business income. Your day trading losses are fully tax deductible against employment income as are certain related expenses. It is always important to consult with a tax professional.
It may be a good idea to consider currency conversion implications. Do you have any losses in U.S. Dollars? They will need to be calculated in Canadian Dollars for tax purposes. Also, if you're claiming any tax deductions, you will need to present receipts.
