a) My first time reporting income from trading (as either capital gains or day trading as a business.) I just spoke with a guy at Softron (in Toronto) who said the ACB calculation for reporting as a business is the same as for capital gains (the only difference being 100% vs. 50% taxable.) Do you think this is correct ?
b) He also indicates he'd have to generate a T5008 entry for each trade. There are over 2000 crypto transactions (many of which are small, inconsequential) , which I have already tabulated using the Koinly crypto tax platform. I thought I would just report the overall gain in Schedule 3, keeping my individual trade records in case of audit. Does it seem right to require a T5008 entry for each trade ?
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.