Any Canadian traders here? How do you handle form t1135 and reporting of foreign securities?
- Thread starter El_Cubano
- Start date
Cannot wait for accountants to be replaced by AI.
https://www.daytrading.com/taxes/canada
If you’re trading in the markets outside of your RRSP or RRIF, you’ll probably treat profits from your investing activities as capital gains. This comes with a distinct advantage – capital gains are taxed at just 50% of your marginal tax rate.
If your intraday profits do qualify as capital gains you will need to look to schedule 3. This totals all the income sources eligible for capital gains and losses. It then takes half this amount for entry on line 127 of your federal tax return. However, any losses you incur can only be offset against other capital gains. Any other sources of income are off the cards. This also means that trading fees are not tax deductible under these rules.
If you’re trading in the markets outside of your RRSP or RRIF, you’ll probably treat profits from your investing activities as capital gains. This comes with a distinct advantage – capital gains are taxed at just 50% of your marginal tax rate.
If your intraday profits do qualify as capital gains you will need to look to schedule 3. This totals all the income sources eligible for capital gains and losses. It then takes half this amount for entry on line 127 of your federal tax return. However, any losses you incur can only be offset against other capital gains. Any other sources of income are off the cards. This also means that trading fees are not tax deductible under these rules.
Was this an auto response?
Im asking about the t1135 form specifically that is about reporting foreign holdings over 100k and the reporting of those funds. And how it applies to your trading.
This is what I find on the internet that I think is what you are talking about going by the title of the webpage. Hope it helps.
https://www.pwlcapital.com/tax-tip-do-i-need-to-file-a-t1135-2/
You can qualify for "simplified reporting method" if your foreign property was less than $250k during the tax year. And you have to report all non-Canadian securities, even when held with Canadian brokers.
Simplified reporting is still confusing to me. Does this mean I just list each stock I traded in the year and the total value of buys and sells?
Is it just one number for the year or on a monthly basis?
Simplified reporting means you only fill Part A and you only provide two numbers for the entire tax year, with no details - "income from all specified foreign property" and "gain / loss from disposition from all specified foreign property"
Now is that 250k threshold for simple vs complex an "at any one time" threshold or in total?
What I mean is that at any one time I never had over 250k in us assets. But with day trading I'll have traded well over 250k worth of any given stock over the year.