How to report day trading as business income(loss) - T5008 vs T2125

[Muskokie]

I conduct business as both a consultant and day trader. Reporting the professional income and expenses is straight forward.  Day trading income/losses are not as evident.

Round 1 - I received T5008s for the stocks traded and entered them but received this warning:
There is a loss for at least one of the T5008 slips which you have reported as investment income. Loss is allowed only when investment activities are reported as business on self-employed statement.

Round 2 - Deleted the T5008 entries and proceeded to T2125. Entered the sale of the stocks as "Other Income" and the purchase of the stocks as "Other Expenses" then received this warning:
As your business (or combined businesses)has generated more than $30,000 of annual gross revenues,you are required to register to collect and remit GST. If you are not already registered, you should contact CRA.

What is the proper method in Turbotax for reporting a loss from day trading activities?

Thx.

[Sam_Tax]

If you enter any T5008 slip with a capital loss into TurboTax, you're given a warning when you reach the Review stage. If you're sure that you've entered your T5008 amounts correctly, you can ignore the warning. 

For more information, refer to TurboTax FAQ: What should I do if I have a capital loss on a T5008 slip in TurboTax Online?

Thank you for choosing TurboTax.

[TurboTaxLise]

Proceed to enter your T5008 losses as per issued.

• What should I do if I have a capital loss on a T5008 slip in TurboTax?

Then fill out your T2125 accordingly to your income & expenses.

• Filing a T2125

Once both have been filled out you should not get the warning for your T5008 slip.

I believe the warning given for the T2125 will not prevent you from Netfiling, but it is letting you know that you need to register for GST/HST that you have collected to remit to the CRA. As your income is above the $30,000 threshold.

The following link directly from the CRA will guide you through the process:

• CRA - Register for a GST/HST account
• The Complete Guide on Collecting GST/HST for Self-Employed Canadians

If after taking these steps you are still encountering an issue, then contact our phone support team
as they have the option to view your screen and troubleshoot what could be causing these warnings.

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