• Last Updated:
  • Jul 5th, 2020 5:52 pm
[OP]
Newbie
Jul 3, 2020
3 posts
1 upvote

CERB and day trading

Hi guys, I need some advice.

I have recently been laid off from my full-time employment position on late March when the pandemic hit.

I reviewed the requirements for CERB and believe that I meet all the criteria, so I started collecting it.

Because I was just idle at home, I started doing some day trading starting on May 15.

I made a little bit over $1700 profit from trading on May 15 to June 6. Assuming that this is considered self-employment income, I have obviously exceeded the $1000 margin for the CERB and have not claimed it for this period.

However from June 7 - July 4, I had a series of ups and downs. At one point I was sitting at a $2200 profit more or less, but by July 4, I walked away with around a $400 loss.

So my question is if I am eligible for collecting the CERB for the June 7 - July 4 period.
11 replies
Deal Fanatic
Jan 19, 2017
7412 posts
4326 upvotes
theopang wrote: Hi guys, I need some advice.

I have recently been laid off from my full-time employment position on late March when the pandemic hit.

I reviewed the requirements for CERB and believe that I meet all the criteria, so I started collecting it.

Because I was just idle at home, I started doing some day trading starting on May 15.

I made a little bit over $1700 profit from trading on May 15 to June 6. Assuming that this is considered self-employment income, I have obviously exceeded the $1000 margin for the CERB and have not claimed it for this period.

However from June 7 - July 4, I had a series of ups and downs. At one point I was sitting at a $2200 profit more or less, but by July 4, I walked away with around a $400 loss.

So my question is if I am eligible for collecting the CERB for the June 7 - July 4 period.
Are you going to report your trading transactions as business income or capital gain? If capital gain, then it is not self employment income.
[OP]
Newbie
Jul 3, 2020
3 posts
1 upvote
ml88888888 wrote: Are you going to report your trading transactions as business income or capital gain? If capital gain, then it is not self employment income.
Business income because I have been mostly buying and selling on the same day
Deal Fanatic
Jan 19, 2017
7412 posts
4326 upvotes
theopang wrote: Business income because I have been mostly buying and selling on the same day
Then yes since you had no income(I.e. business loss).
Deal Addict
User avatar
Oct 7, 2007
2774 posts
1663 upvotes
Edmonton
Receiving CERB and then day trading? Seriously?
Deal Guru
User avatar
Sep 21, 2007
11356 posts
9687 upvotes
Winnipeg
frankmp wrote: Receiving CERB and then day trading? Seriously?
how are you shocked by this? There's millions in the states doing this
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Addict
Nov 13, 2013
3784 posts
2343 upvotes
Ottawa
Why would you day trade and potentially lose your CERB? When you were up $1700 why not bet that much on some risky options? So you are up $1300 in two months and otherwise sitting at home doing nothing would hae made $4k?

There is no proven ability to make money day trading. Otherwise big fast hedge funds would do it to make unlimited money.
Deal Addict
User avatar
Oct 7, 2007
2774 posts
1663 upvotes
Edmonton
faken wrote: how are you shocked by this? There's millions in the states doing this
No just the idea op doing it and then coming here for opinions.
I suggest op call CRA for advise....
Jr. Member
Feb 8, 2010
197 posts
33 upvotes
Calgary
coming from someone with no educated background. I am going to guess that day trading is not considered employment income unless you are getting paid by a corporation to do it. As a person you are just trying to invest your money wisely... by gambling it on stocks.
Deal Fanatic
Jan 19, 2017
7412 posts
4326 upvotes
liquidpill wrote: coming from someone with no educated background. I am going to guess that day trading is not considered employment income unless you are getting paid by a corporation to do it. As a person you are just trying to invest your money wisely... by gambling it on stocks.
CRA can consider your trading activity as business and gains and losses as business income or loss.
[OP]
Newbie
Jul 3, 2020
3 posts
1 upvote
ml88888888 wrote: Then yes since you had no income(I.e. business loss).
I am just worried that since the government receives record of all transactions that they might interpret it differently.
i.e That since I was over $1000 at any point during the period, I would not be eligible for that period and will be penalized for making a wrongful claim

Why would you day trade and potentially lose your CERB? When you were up $1700 why not bet that much on some risky options? So you are up $1300 in two months and otherwise sitting at home doing nothing would hae made $4k?

There is no proven ability to make money day trading. Otherwise big fast hedge funds would do it to make unlimited money.

Yeah I would have had more if I had done nothing. I guess I just got drawn in by the online ads that I was seeing and wanted to try for myself
No just the idea op doing it and then coming here for opinions.
I suggest op call CRA for advise....
I tried giving their general inquiries a call several times. I waited for over an hour for one of these calls and could not get a hold of anyone. I might try again tomorrow though
Jr. Member
Oct 24, 2010
193 posts
66 upvotes
Toronto
To be clear, I don't work for the CRA nor am I an accountant/CPA or in a relative financial industry; take my thoughts as an opinion and if you can get in touch with the CRA, you should get a conclusive answer.

Likely your 'gambling' will count as capital gains/losses (do check if any are superficial losses). CRA is dealing with a lot of other issues to really come after you for $1-$2k, though how frequently you traded may play a part in their decision IF they do investigate.
Do your best to find work safely and this 2-month period *should* be a blip for you overall for 2020. Try and do a bit more reading on investing if you're interested.

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