Question

How to claim day trading losses as a full-time day trader?

Forum|Forum|4 years ago
April 19, 2022
2 replies
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This is the first year that I am filing as a day trader and filing my trading income as business income. This year my income from day trading is negative. How do I write off the losses from my day trading? When I input the information from my T5008 will it automatically calculate my losses and write them off against my other income or is there somewhere else that I need to input the losses?

C

Carolina_22

When you report losses from day trading you will need to report the loss as a business loss separately from your T5008. As day trading losses are fully deductible against employment income, it will only lower taxes payable. Business losses are also fully deductible against other sources of income.

For more information please refer to the following TurboTax article:

How do I report income made from day trading?

Thank you for choosing TurboTax

E

eidelson

How to fill T2125 if your are doing day trading and received T5008? Can I use the information from T5008 or do I need different kind of statement from broker?

Thanks

TurboTaxSusan

@eidelson You would use the info from your T5008 slips to fill in the Inventory section of the T2125.

C

chraza

Im also interested in this, the article mentioned does not lay out the full steps on how to report losses. when i enter all the T5008 slips, it automatically considers them as Capital Gain (losses). How do i change it to business income or loss?