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Were you able to figure this out? I have started trading futures in Canada and now have the same issue. One accountant I spoke to told me I need to have every single trade listed for CRA. How do I do that? for example I buy crude at 50 and sell at 51, how do I enter that in a spread sheet?
@isi62
IB provides details of every trade and a summary electronically at the end of the year. I have used this summary for my tax returns, which I cross check to what the CRA already shows on their web site for me. No problems or accountants.
I assume other brokers do the same, or change to IB.
@VictorK thanks for the response. I hope you don't mind a couple more questions, I have found the info online and from my bookkeeper very different and confusing. Have you done this for a few years? Has CRA ever asked questions? My business accountant tells me that I will need to record and list every single transaction as well as currency conversion and that summaries are not gonna wash. I trade intraday and a few trades a day turns into a lot of info.
I do use IB but have never seen what they provide at year end. You say it lists every trade for the year with all pertinent details?
Mostly I am curious if your method has been through any scrutiny from CRA and passed the test.
Any time and help would be appreciated.
Craig
I am not a tax accountant so I am not providing tax advice. Read and follow the instructions provided by CRA on their site.
Step 1
Go to the CRA website, sign in or register for My Account. Then go to Tax Return, then go to Tax info Slips, then to T5008 to see what info your broker has provided to CRA converted to CDN$. This is what you report on your tax return,
Step 2
To reconcile with your trading history sign in to Interactive Brokers, go to Account-----Account Management--- Reports ---
Statements --- Annual 2017--- open up to whatever level of granularity you wish. This will be US$ for each instrument traded. Keep a copy for your files.
Step 3
Then in IB go to Reports in Account Management--- Tax -- Tax Forms 2017 ---Form T5008 Statement of Securities Transactions which gives the amounts converted to CDN$ for tax reporting.
When I was trading futures I was flat at the end of the day.
I do my own taxes with turbo tax Canada. With the tax program you can input the data from the T5008 issued by your broker.
I had to adjust the T5008 numbers for the exchange rate.
I filed using Net File
I keep a detailed spread sheet of all trades for back up.
Never had a problem.
Your accountant is right in that you have to have a paper trail for each trade. But I don't think you have to send it to CRA unless they request it. Possibly your accountant would want to review it before signing his name to the return. Does he charge you by the hour?
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
Hi, I day trade (I am flat by end of day) through a US discount broker. I did not receive any T5008 slips. I have only traded ES through CME. Do I have to file a T5008? How to do this without slips?
I'm not a tax expert. I'd recommend talking to an accountant.
You won't get a T5008 from a US broker.
Report your gains/losses on schedule 3. One line showing your total cost, your proceeds and outlays(commissions) should be sufficient. The big thing is to have a paper trail so that you can justify what ever you report.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard