I am classified as a day trader using business income/losses (not capital). How should I document income and losses, especially if losses exceed the income last year?

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If you suffer a loss from selling shares from a small business corporation, you can declare them as allowable businesses losses. If your loss is more than all of your other income, the difference can be carried forward or back as a non-capital loss. Complete Chart 6 of the T4037 Capital Gains form to determine the loss amount, then report the loss on line 21699 and line 21700. Report the total ABIL on line 21699, and report the allowable portion to claim based on your income on line 21700.

For more information please see:

Losses and How to Claim Them on Your Taxes

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