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Deductibility of securities trading losses

FLASH | PRO LEVEL PRIVILEGE
By Doug Carroll | May 17 2013 08:22PM

At issue
Business losses incurred in the course of securities trading may be deductible to a taxpayer where it can be shown that they arose while the person was either a “trader” as defined under the Income Tax Act, or was otherwise engaged in an “adventure in the nature of trade”. To determine whether this latter characterization applies, a court will generally weigh five factors: