How to claim day trading losses as a full-time day trader?

[demae226]

This is the first year that I am filing as a day trader and filing my trading income as business income.  This year my income from day trading is negative.  How do I write off the losses from my day trading?  When I input the information from my T5008 will it automatically calculate my losses and write them off against my other income or is there somewhere else that I need to input the losses?

[Carolina_22]

When you report losses from day trading you will need to report the loss as a business loss separately from your T5008. As day trading losses are fully deductible against employment income, it will only lower taxes payable. Business losses are also fully deductible against other sources of income.

For more information please refer to the following TurboTax article:

• How do I report income made from day trading?

Thank you for choosing TurboTax

[demae226]

So I would still include the T5008 and report the loss somewhere else?  Where do I report the loss, i.e. what form do I use? 

[Muskokie]

The article in the link only explains filling out the T5008.

I have run into the same situation and I am trying to understand how to fill out the T2125 as it relates to reporting a loss.

If I report income (sale of investments) and expenses (purchase of investments) it calculates the loss correctly. Problem - CRA now wants me to register for GST since the Gross Income (sale of investments) exceeded $30,000.

[chraza]

Im also interested in this, the article mentioned does not lay out the full steps on how to report losses. when i enter all the T5008 slips, it automatically considers them as Capital Gain (losses). How do i change it to business income or loss?

[chraza]

Im also interested in this, the article mentioned does not lay out the full steps on how to report losses. when i enter all the T5008 slips, it automatically considers them as Capital Gain (losses). How do i change it to business income or loss?

[TurboTaxBrenda1]

As a day trader your income is considered business income. Therefore you will report your income under the T2125- as a business income. In the Business section you will be able to enter your profit or losses. If its a negative it will reduce other source of income. There is no capital gain as  a day trader. 

As a trader you can claim business expenses.

You will not enter your T5008 slips- only report your income on the T2125.  

Thank you for choosing TurboTax.

[marvelfl11]

Hi, 

Even though this makes sense, it still difficult to see where we would put the losses. I can put some of the losses in the expense part but the actual sale losses it does not give you an option ... unless I'm missing it. Could you let us know where exactly the loss of sales would be entered? 

[TurboTaxBrenda1]

If you have a T5008 the amounts of loss will be listed. 

[marvelfl11]

Yes, but I don’t want to list it as a capital loss nor investment. So even though it list the loss, it doesn’t reflect the day-trading part of business loss. I want to know where the negative value of the business loss would be entered.

thank you for responding !