Dealing with Canadian Taxes on Forex

Discussion in 'General Forex Discussion' started by capper, Dec 24, 2017.

  1. capper

    capper Trader

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    I have a bit of a dilemma and I am hoping I could get some good advice on my current situation. I currently have a lot of losing open trades. However, I am showing almost 77k in profits so far this year (2017). I no longer have any carryover in losses from previous tax years. I am hoping to either show 0 profit or show a loss for 2017 so that (a) I do not have to pay any tax on such profits and (b) I can start balancing my account and rid myself of some of the awful open trades I have.

    Before going further into detail, I will post a screen shot of my open trades. If you have some reasonable knowledge on the subject, please give me your opinion as to which trades you would close first and why. I have until December 31 to take care of business, otherwise I will be paying CAD taxes on almost 77k USD or more!

    If you have questions regardng my account and / or situation, feel free to ask on this thread or PM me. I have used a couple of other forums but this is the first time I have posted on this one.

    BTW, this is not a practice account or a joke... This is my real account using FXDD on Metatrader 4! I just managed to capture all of my open trades in one rectangular screenshot as shown. Unfortunately, I do not have any open trades ATM that are winning!


    Dec24.PNG

    I look forward to hearing from you soon on this thread or via PM.

    THANKS.
     
    Last edited: Dec 24, 2017
  2. Enivid

    Enivid Administrator Staff Member

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    I believe the best course for you to take would be to contact a licensed tax professional in your locality. It will cost some money but will help you to avoid losing even more due to improper understanding of your situation with the taxes.
     
  3. capper

    capper Trader

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    I have spoken to my accountant and he informed me of the tax guidelines on my forex trading. He would never get involved in decisions about forex trades just as an accountant would never advise people on which stocks to buy or sell. My question is more for people who have been trading forex and have advice for me about what decisions might be best for my portfolio given that I want to close some trades and dump several thousand dollars this week. I have been trading hard and jacking up my account balance -- especially over the past couple of months. The sad reality is that I will now have to give a nice chunk of that back. However, those terrible losing trades that are hurting me were all opened 4 and 5 years ago. My losing trades that were opened over the past 2 years are minuscule in comparison. Along with the fact that I have had decent profits recently tells me that I have been a lot wiser over the past 2 years than I was previously.

    I have always said that you have to be willing to take losses in this racket in order to make money. I kind of use the same analogy with a batter in baseball. You have to be aggressive going after pitches and not be afraid to swing and miss -- but you also have to protect the plate when the time comes and not always look for the big hit. I would often get stubborn and not be willing to take a small loss on a trade or on trades that didn't go my way. This ended up hurting me a lot on some trades.
     
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