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Day Trading Taxes / Superficial Loss Rule

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Hello Montreal BBT members...

New member here and new to Quebec too. There is already an existing post on taxes which I found informative, but thought of creating another as I had a couple more specific questions


1) I am new to trading, especially day-trading, members here any recommendations on CPAs in and around Montreal who does accounting/taxes for day trading businesses, familiar with an active trading business? I am finding it hard to find one 

2) I believe any income on day-trades classifies as business income? Any preference on whether to operate a day-trading business via 'private incorporation' OR 'just an individual' and classify it as business income?

3) Regards to general day trading, one issue been bugging me all along is the concept of 'superficial loss rule/ wash sale in the USA', considering the style of trades ( at least in general), it is very normal to trade the same symbol for many successive days and sometimes book a loss , it would fall under the superficial loss rule, but how to report those or its a non -issue? If reported as a business income, Is it just end to end profit/loss what CRA is ok with for day-trading?

 I do see Andrew and many other mods on livestream exit a position at a loss and then reenter almost immediately when it validates an entry and exit with profits. All those trades, do they qualify under 'superficial loss rule'? If operating as a business can those losses be written off. Any thoughts from members who might have encountered trading the same symbol again and again, how do you guys report the losses if at all it is required?


Any thoughts would be really helpful

Thanks a lot,

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Hope some members can provide you with answers, 

1) I cannot recommend any CPAs at the moment because my Financial Advisor was doing them for me and starting next year he won't do them anymore, so I'll be looking for one myself as well.

2) Really a question depending on your individual situation... For my situation, my daytrading is a really small part of my total income, so personnally I just write them as realised capital gain/loss since I didn't create a business for my daytrading venture. Any gain/loss adds to my total personal yearly income.  Not saying it's the right way to do it. It's just the way I do it because the money I make daytrading doesn't justify a business structure. To give you a concept example: let say I net 10k a year daytrading, 5k is taxable, so it adds 5k on my total revenu, that 5k will be taxable depending on my tax ladder level vs my yearly income. Again, this is my situation.. bottom line, a CPA/Financial Advisor will be able to see the best structure for your situation.

The other thing too, goes back to the CPA/ you have to take in considerations all the gov. programs ex: child allocations, a change in structure or revenu can affect your overall net income.

3) Been trading for 7 or 8 years (can't even remember.. haha) never had issues with this concept, but again, maybe they don't bug me because my amounts are small or it's not my main income. All I do when it's tax season I 'print' all my transactions, so they have the details, and I put the total on my tax report.. I even think last year I never sent the details I just sent the total per stock. Not even sure if it's necessary to do this... but never had issues yet. Again.. not a recommendation.. it's just what I do.  In my case, even if this way is the wrong way, you understand the impact is not as big as somebody who does this for living.. but it's something I want to ask myself to a professional when I find one.

Sorry for the delay, I wasn't answering because I didn't think I would bring any added-value on what as been said, hope you get some better answers from our room members!



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@TheKbSb thanks very much for the answers, it helps a lot.


I have been sparsely monitoring this post and I personally messaged a few other active members based around Montreal, I guess and I got a few answers. One information might be useful for you as you are looking for a CPA.

@FlourishingWeee shared their CPA service, you might want to reach out to them possibly.  here is the link http://www.pbjm.ca/  .

*** Also you might want to check out KPMG Montreal (514-840-2100) and inquire about private tax advisor/enterprise (I was fortunate enough to get in touch with Ryan Gertzbein , if you checked BBTs Canadian tax webinar hosted by peter , he brought on board 3 KPMG professionals, though they are Ontario based , Ryan was kind enough to provide a 1hr free phone consultation when I reached out to him about a few questions, he asked me I can reach out to KPMG and even mention BBTs webinar reference.) ***  You can even consider dropping Ryan a line

As for personal/business income. after discussion with Ryan, and in my case considering this is possibly going to be the major source of income, it possible to report as a business income but not incorporate (I would not be eligible for small business tax credit though), thinking of going that route , hopefully I can find reasonable success in day-trading to think of incorporation later once it is possible to ball park a consistent income.

*** As for your answer to (3), about not worrying about superficial losses etc, I think you are spot on. From whatever materials I have come across and speaking to Ryan from KPMG on phone and asking these exact questions, to qualify as a day trader you need to check these boxes ( How often you hold a trade ->should be short enough, How often you trade -> Frequent, How much time you spend -> Quite a lot of time in trading and research, How substantial your day trading income is relative to other income -> As you describe, it is very LESS in your case relative to your other income sources) . So, even if you might check the first 3 conditions, you do not satisfy the substantiality test, which would mean that you are very right in reporting them as 'capital gains'. I don't think you are wrong in any way.


Appreciate all the inputs,



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