To report those stock trading transactions for income tax purposes, as anyone will note you cannot report negative income for "Gross Sales, Commissions or Fees...", that is because you are "Trading". Consider the financial asset as you would any other capital asset being bought and sold as a business, which is reported in the Cost of Goods Sold section of the T2125, as well as for your records in bookkeeping. There would be an Opening Inventory, Purchases, Direct Wages costs, Subcontracts, and Other Costs, all of which sums to an overall Cost of Goods. Next you determine the value of your Closing Inventory. The difference from your Cost of Goods and your Closing Inventory determine if you had a Profit or Loss in your trading. For reference, please review “Part 3D – Cost of goods sold and gross profit” in the guide T2125 “Self-employed Business, Professional, Commission, Farming, and Fishing Income: Chapter 2 – Income”. See: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-4.html#...
Note, there are special considerations and treatment for assets ("stocks") being brought into the business as opening inventory. Additionally, I would like to re-emphasize the importance treating this endeavor as any other business trading in goods, where you would maintain accurate records and bookkeeping of all transactions, as well as a log of your time allocated to this business activity. Should you receive a Supplemental Review request or an Audit from the CRA to substantiate your declarations, including claims of a loss, these records would be essential in your reply.
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