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futures tax rate in Canada?


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futures tax rate in Canada?

  #31 (permalink)
isi62
Toronto
 
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Blue Eagle View Post
Apologies for a question that is off topic but I haven't seen any threads closer to my needs. I am Canadian and have just started trading futures live. I am curious if anyone knows of a simple way to track trades for accounting purposes. I run a business and asked my accountant about it and she said I need to track every trade and also do some calculations on exchange rate daily (as I fund in Canadian dollars but through IB trade in US dollars). She said it is quite extensive which has caused me some grief. I am making 3-10 trades a day for a few contracts each so not a ton but I don't really want to have to go thru and enter each into a spread sheet every single day.
Any thoughts or solutions would be appreciated.

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?

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  #32 (permalink)
 VictorK 
Milton, On, Canada
 
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@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.

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  #33 (permalink)
 
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 Blue Eagle 
vancouver British Columbia/Canada
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VictorK View Post
@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

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  #34 (permalink)
isi62
Toronto
 
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VictorK View Post
@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.

Thank you for reply VictorK

I am with TradeStation and they do provide summaries but how do I use it? Can you please send the link to CRA website?

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  #35 (permalink)
 VictorK 
Milton, On, Canada
 
Experience: Intermediate
Platform: Ninjatrader
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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.

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  #36 (permalink)
 
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 Blue Eagle 
vancouver British Columbia/Canada
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VictorK View Post
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.

Thanks you... I will look into that soon.
Craig

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  #37 (permalink)
 
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 deaddog 
Prince George BC Canada
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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
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  #38 (permalink)
wisp
vancouver, BC
 
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deaddog View Post
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?

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?

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  #39 (permalink)
 
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 deaddog 
Prince George BC Canada
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wisp View Post
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
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  #40 (permalink)
wisp
vancouver, BC
 
Posts: 43 since Sep 2017
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deaddog View Post
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.

Thank you so much.

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