Where do I report the loss on a short sale of stocks?

b-kiz · ‎October 29, 2019

CRA says the loss on a short sale is to be reported on the income account, yet I cannot enter a negative number on your "Investment and Other Income" line. Thanks

Martine-TurboTax · ‎October 29, 2019

Good afternoon

Please click on this link it will give you some in site on how to proceed with your loss and how to report it.

https://turbotax.community.intuit.ca/questions/1190196-t5-statement-of-investment-income

https://turbotax.community.intuit.ca/questions/1189828-t3-statement-of-trust-income-allocations-and-...

View solution in original post

b-kiz · ‎October 29, 2019

Neither of the answers below is correct. Gains and losses from short selling stock is not reported by a T5 or a T3 slip. CRA interpretation bulletins say that gains or losses from short selling securities are to be reported on the income account, not the capital gains account. Therefore the gains or losses from short selling stocks should be reported on Line 121 "Interest and Other Investment Income". However in the case of a loss due to short selling, Turbotax does not let me enter a negative number on line 121. Please advise further. Thank you

Martine-TurboTax · ‎October 29, 2019

Please note that your entry should be on line 221, this amount should be a positive amount that will reduce your income which will reflect on your T1 as well as schedule 4.

b-kiz · ‎October 29, 2019

@Martine@TurboTax I spoke with CRA agent 01825PRA today who advised me that the loss from a short-sale of securities should be reported on Line 130 as "Other Income". This is confirmed by CRA Interpretation Bulletin IT-479R #18 which sales the gain or loss from a short sale is considered to be on the income account.
However TurboTax does not let me enter a negative number on the Other Income page, for Line 130. Please advise how to enter this. The CRA agent confirmed that reporting the loss will be disallowed under Line 121 or Line 221. Thank you

b-kiz · ‎October 29, 2019

@Martine@TurboTax by your silence I take it that TurboTax is unable to meet my needs? Please let me know either way so that I can get on with filing a paper report if necessary. Thank you

Martine-TurboTax · ‎October 29, 2019

Your entries as I mentioned earlier should reflect on schedule 4 however if this isn’t working kindly call an agent there maybe an issue that we can take a further look.

Please call us by clicking the following link to the Contact Us page. Then complete the required information. A phone number will appear, along with your incident ID. Call the number. This will ensure that an appropriate agent is assigned to your query:
https://support.turbotax.intuit.ca/contact/

An Agent is standing by

Martine@TurboTax

bechard04 · ‎October 29, 2019

Did you ever figure this out? I need to know where to report my loss from shorting stocks

Martine-TurboTax · ‎October 29, 2019

Good afternoon

Please click on this link it will give you some in site on how to proceed with your loss and how to report it.

https://turbotax.community.intuit.ca/questions/1190196-t5-statement-of-investment-income

https://turbotax.community.intuit.ca/questions/1189828-t3-statement-of-trust-income-allocations-and-...

View solution in original post

b-kiz · ‎October 29, 2019

@Martine@TurboTax Neither of the answers here are correct. Gains and losses from short selling stock is not reported by a T5 or a T3 slip. CRA interpretation bulletins say that gains or losses from short selling securities are to be reported on the income account, not the capital gains account. Therefore the gains or losses from short selling stocks should be reported on Line 121 "Interest and Other Investment Income". However in the case of a loss due to short selling, Turbotax does not let me enter a negative number on line 121. Please advise further. Thank you

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Where do I report the loss on a short sale of stocks?