Revenue Canada link:
http://www.ccra-adrc.gc.ca/E/pub/tp/it479ret/it479re.txt.html
Basically you elect to be treated as a biz if you want to deduct expenses. Bottom line though is always talk to accountant for last word on the subject.
DISPOSITION OF SECURITIES - INCOME OR CAPITAL
9. Some security transactions are clearly on income account and these
types of transactions are discussed in 15 to 21 below. For other
security transactions it will be necessary to examine the facts of the
specific case in order to determine whether a transaction is on income
or capital account. The tests that the Courts have applied in making
such a determination are those of "course of conduct" and "intention"
and these tests are discussed in 10 to 13 below. The factors to be
considered when determining whether the gain or loss on the disposition
of a bond, debenture, bill, note, mortgage, hypothec or similar
obligation (debt obligation) is on income account or capital account
are set out in IT-114, "Discounts, Premiums and Bonuses on Debt
Obligations".
10. Where the whole course of conduct indicates that
(a) in security transactions the taxpayer is disposing of
securities in a way capable of producing gains and with that object
in view, and
(b) the transactions are of the same kind and carried on in the
same way as those of a trader or dealer in securities. the proceeds
of sale will normally be considered to be income from a business
and, therefore, on income account.
11. Some of the factors to be considered in ascertaining
whether the taxpayer's course of conduct indicates the carrying on of a
business are as follows:
(a) frequency of transactions - a history of extensive buying and
selling of securities or of a quick turnover of properties,
(b) period of ownership - securities are usually owned only for a
short period of time,
(c) knowledge of securities markets - the taxpayer has some
knowledge of or experience in the securities markets,
(d) security transactions form a part of a taxpayer's ordinary
business,
(e) time spent - a substantial part of the taxpayer's time is spent
studying the securities markets and investigating potential
purchases,
(f) financing - security purchases are financed primarily on margin
or by some other form of debt,
(g) advertising - the taxpayer has advertised or otherwise made it
known that he is willing to purchase securities, and
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(h) in the case of shares, their nature - normally speculative in
nature or of a non-dividend type.
