Sales Calculation Form 11

[weintegrators]

As a trader, How should I calculate Sales/Receipts/Turnover (Point 127) and Purchases (Point 130) in Form 11, Section Income if I trade stocks and equity options?





For example, if I buy 1,000 shares at $100 each (total cost: $100,000) and later sell them for $150 each (total proceeds: $150,000), should I report:


• Sales/Receipts/Turnover (Point 127) as $150,000 (total selling price)


• Purchases (Point 130) as $100,000 (total buying cost)





Or is there a different way to calculate these figures for tax purposes?

 

[T McGibney]

For starters, don't report them in dollars

Sales are sales/turnover.

Purchases are purchases.

The difference between sales and purchases is your gross profit.

And so on.

 

[weintegrators]

Thanks,

If I bought options/stocks but haven’t sold them yet, how should I handle them on Form 11 for the current tax year, would they be part of purchases but not the sales.

Since I haven’t sold these options yet, I dont need report them under Sales/Receipts Only closed (sold) trades should be included in Sales/Receipts/Turnover