Investment income is a common item on income tax returns. Figuring out how much to report and how exactly to report it is getting more complex as banks and online brokerages make it easier for investors to access more complicated investment products. The recent explosion in cryptocurrency investing also leads to questions on how to report complicated transactions which typically are not reported to the investor in a user-friendly manner. This course will help clarify how to calculate and report income from a variety of investments.

This course will review the basic concepts of income vs capital and timing of income/gain recognition and apply them to investment products currently in the market, including put/call options and cryptocurrency.  How these items are typically reported by brokers to investors, and whether that information is appropriate for income tax purposes will also be discussed.

Investment income reported to investors on T-slips and gain/loss reports received from brokers are familiar; however, these don’t always contain the information we need to properly report these items on a tax return. In trying to characterize investment income correctly we come across issues such as income vs capital and when in fact income or a gain has been realized for income tax purposes. This course will review the basic concepts of income vs capital and timing of income/gain recognition and apply them to investment products currently in the market, including put/call options and cryptocurrency. Discussion of how these items are typically reported by brokers to investors and whether that information is appropriate for income tax purposes will also be include.

Topics Include:

• Income vs capital
• Timing of income/gain recognition
• Foreign currency transactions
• Transactions involving options
• Cryptocurrency

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants should be able to:

• Analyze income vs capital issues.
• Understand income recognition timing issues.
• Short sales.
• Properly report transactions involving option writing.
• Understand the basics of reporting foreign currency transactions.
• Understand issues involving cryptocurrency.
• Report transactions with other common investments such as flow-through shares.