Investing

Taxes: How To Report Capital Gains for Various Scenarios and Clarifications

  • Last Updated:
  • Apr 9th, 2019 8:33 pm
[OP]
Newbie
Nov 9, 2014
39 posts
18 upvotes
Alberta

Taxes: How To Report Capital Gains for Various Scenarios and Clarifications

Hi RFDs,

I was wondering if some fellow RFD folks would happen to know how to file capital gains for various contexts below, as well as clarify my questions - I have bolded them accordingly. I have read some stuff from the CRA site, but I am about it but still struggling how to do it properly, what to fill out per se, and the whole FX rate factor for US gains.

I will be using SimpleTax this year, as I have used it in previous years. If anyone is familiar with how to file capital gains via this online software, I would really appreciate it your magic wisdom! If you have a cool Excel spreadsheet you use that you like to share, I would also appreciate it as well.

I recently started investing heavily last year across my TFSA, RRSP, and Non-Registerer accounts.

I made capital gains and ate some minor losses via trading in different scenarios in my non-registered account trying to learn stock trading last year. I am just not sure how to calculate them. The gains are spread across my US and Canadian holdings.

My Inquiries

Does anyone know how to calculate the following scenarios? Will I need to use multiple Schedule 3 forms for the same equity if gains were realized across the same day or several days?

Scenario A:

Day trade scalping the same stock throughout the entire day:

For example, I traded GOOS twice for .50 cent and 1 dollar gains at different periods of the same day and made a total of $700.

Scenario B:

Day traded the same stock once a day but for several days in a row for a total of $3000.

Scenario C:

Swing traded a stock for a gain of $5000 in a month.

Thank you for your feedback and help!

Can all my gains and losses across all equities be tabulated in the same Schedule 3 form? Or do I need to use separate Schedule 3 forms for each equity?

I have read that only 50% of your capital gains are taxed? In my Schedule 3 form, do I enter the full capital gains earned or do I have to divide it by half before entering them in? I wasn't sure if the tax program automatically deducts half the gains and calculates how much I owe?

How does it work for capital losses? Is it 50% as well? Is it the same process for gains?

How do you calculate US capital gains and convert them to CDN?

Thank you so much everyone!
4 replies
Member
Dec 26, 2013
469 posts
159 upvotes
Ottawa
this is why I dread starting a taxable account. I only plan on making quarterly withdrawals from mine so I don't think it will be that daunting. I think its the day tradings flipping stocks every day, those are the ones who need a detailed spreadsheet on ACB, ROC, distributions etc.
Sr. Member
User avatar
Feb 5, 2017
837 posts
653 upvotes
for day or swing trading :

for each ticker, using the tax package from your broker, enter the total of disposition for this ticker for the year, then enter your total ACB and let the software calculate the cap gain (one form for each ticker). This year I had tickers reporting over 20M in transactions, even though the cap gain reported was only in the 10 of thousands.

software will calculate the amount of tax but you report total cap gain or total cap loss, indirectly by writing total ACB and total of dispositions.
[OP]
Newbie
Nov 9, 2014
39 posts
18 upvotes
Alberta
wilyam wrote: this is why I dread starting a taxable account. I only plan on making quarterly withdrawals from mine so I don't think it will be that daunting. I think its the day tradings flipping stocks every day, those are the ones who need a detailed spreadsheet on ACB, ROC, distributions etc.
Ugh I tried doing research on how to do it properly... didn't end up being well. Just paid nice accountant person fair amount to calculate it all for me this weekend lol.
[OP]
Newbie
Nov 9, 2014
39 posts
18 upvotes
Alberta
alexcalvado wrote: for day or swing trading :

for each ticker, using the tax package from your broker, enter the total of disposition for this ticker for the year, then enter your total ACB and let the software calculate the cap gain (one form for each ticker). This year I had tickers reporting over 20M in transactions, even though the cap gain reported was only in the 10 of thousands.

software will calculate the amount of tax but you report total cap gain or total cap loss, indirectly by writing total ACB and total of dispositions.
Thanks for the feedback! I tried doing properly via adjustedcostbase.ca website... didn't end up being well. Just paid nice accountant person fair amount to calculate it all for me this weekend lol. Thanks for providing info though!

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