I have a day trader that didn’t use a corporation for his work.
what NAICS Code would I use to report his day trading business.
Am I correct to classify his income as professional
and also put his gains and losses into the cost of sales section of the T2125 in TAxcycle?
Kind Regardsi
Gerry A.
You are correct to report the activity on his T2125. However, this is not classified as professional activity. Simply, record it as business activity.
Correct NCAIS from my experience is 523210.
Gains and losses are considered business income (in the same way derivatives are treated for tax purposes).
Not sure how the taxcycle T1 is laid out, but you would either report the income or loss, not as a cost of sales… Operating expenses would include that such as brokerage fees and FX gain/losses (realized).
I have always used 523990.
thank you so much. The taxcycle community has been great place for guidance on tax questions for many years. With the support, best tax software and community of users in Canada, in my opinion