See my below posting. For Gain/Loss calculations on forex transactions, use pcimpots.com/st_e.html (english) or pcimpots/st_f.html (french).
I did my forex exchange trading tax report in 2010 and 2011 at hr block. I found just now they filled in defferent Item. one treated it as a foreign captial income. another treaedt it as a captial income at sch 3.
I do use fxcm uk account. but i did all the trading in canada. now I am confused , should it treated as a foreign capital income or just normal captial income?
When you phone the CRA you are getting a verbal answer. Phone back a few days later, ask the same question and get a different answer. You have to have a tax LAWYER who looks it up in the the tax law for the correct answer. Don’t ever assume the CRA is always right because they are not.
You don’t have to report all transaction. You only have to report on the funds you have taken out of your account, after it is a bussiness and you can’t have an income unless funds have been with drawn. Get a tax lawyer.
What…you actually called the CRA and got a VERBAL ANSWER, how dumb is that. If your a serious trader you have to see a tax lawyer who abids by the written law some CRA agent you talked to over the phone.
You need to go back to page one and read what I wrote. Get a tax lawyer.
NOT TRUE…GET A TAX LAWYER, you be surprised how little an over the counter CRA agent knows. You can call a number of times and talke to different agents and get different storys. These are not professional people…if your serious about trading for a living, get a TAX LAWYER.
Have you read page one,get a tax lawyer…end of story.
Go back to page one…I have been audited…agents and accountants know nothing…each agent will give you a different answer AND accountants are just as bad…in other words…get a TAX LAWYER…can’t believe so many people in the blog keep thinking the CRA is right all the time…you be surprised when a tax lawyer enters the picture everything is based on factual law, not some CRA over the phone opinion…if your serious about trading get a tax lawyer.
go back to page one and read what I said five years ago…how come you guys keep on asking the same question when all you need is a tax lawyer…
get a tax lawyer. in fact go back to page one and read again.
I looked it up recently on the CCRA website. Its taxed as a capital gain.
Generally,Income tax is taxed at your marginal tax rate and the capital gain tax is a generous half of your marginal tax rate.
As a situation of Forex trade in Canada can be treated as either income or capital gain tax as per IT-95R Foreign exchange gains and losses.
no.
TFSA is registered just like RRSP, so you cannot do any trading that is on margin, which means no forex at all and no shorting stocks unless you use inverse-ETFs (my fav were FAS / FAZ, the bull/bear financial 3x leveraged ETFs)
Yes that is correct. but also i would like to add is that it is better if you give your Forex income thru Income Tax as that would also give you lower taxes 
huh? explain in english?
This. Get a tax accountant.
You might find a clause or two about “foreign exchange gains/losses” but think about what that was probably written to cover: buying assets in another country. Not specifically spot currency trading.
I wrote a bit of info on this subject in another thread:
http://forums.babypips.com/forextown/49089-forex-trading-canada.html#post426662
Long and short of it is; capital gains like an investment til CRA decides your trading for income, then it’s income if you like it or not.
A good tax accountant will be able to look at your setup, see your other income, and know the best way to file. I used a CA for a few years when I first got started to make sure I wasn’t going to get bent over by CRA. Worth every penny.
Though, all this doesn’t matter too much if you’re new and not even profitable yet. If that’s the case, forget about taxes for now and just focus on building consistency. If you bust out and never come back then it’s a capital loss against other investment gains. Simple. So put that brain power in to the market not taxes.
Or, put another way, wondering how to file for taxes on profits from forex is a good problem to have AFTER you’ve mastered your individual method of trading and are consistently profitable.
I deal with Mills & Mills in Toronto and after lengthy pause in their reply, I was to there is no way to “resign as a taxpayer”
Can you suggest a lawyer who does know?
i was thinking to have numerous tsfa accounts and withdrawal the money from broker into tsfa
For Canada forex taxation:
When you say reporting income, do you mean profit? It is possible to have a net Zero with having funded the account in the beginning and withdrawing an equal amount in the tax year. I think that is where I might get confused on a tax form.