Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
940093
XXXXXXXXXX J.A. Szeszycki
March 8, 1994
Dear XXXXXXXXXX:
Re: Gains/Losses from the Trading of U.S. Stock Options
This is in reply to your letter of January 12, 1993 in which you requested confirmation as to the correct tax treatment with respect to gains and losses resulting from activities as a trader in U.S. stock options during the 1993 taxation year.
As we understand the situation, up until XXXXXXXXXX your trading activities in U.S. stock options have been occasional and the resultant gains and losses have been reported annually as capital gains and losses. During this period you had a full time employment position with the XXXXXXXXXX Since XXXXXXXXXX you have left your position XXXXXXXXXX and have been involved in the trading activity on a full-time basis. You have referred to the Department's Interpretation Bulletin IT-479R "Transactions in Securities" and have indicated that your situation can be described in paragraph 11, other than the element of advertising.
You have been advised by telephone that, from the information provided, we would agree that your trading activities would now be viewed as a business and consequently, any gains and losses should be treated as business gains and losses. Based on the information contained in your letter, we would confirm that advice.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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