Income Tax - Investment Income

Overview:

Investment income reported to investors on T-slips and gain/loss reports received from brokers is 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, other derivatives 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.

Course Content:

In this course, you will gain knowledge about the following topics:

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

Learning Objectives:

Upon completing this course, you will be able to:

• Analyze income vs capital issues
• Describe income recognition timing issues
• Describe short sales
• Report transactions involving option writing
• Describe the basics of reporting foreign currency transactions
• Describe issues involving cryptocurrency
• Report transactions with other common investments 
  

Who Will Benefit: 

Practitioners or financial executives who must calculate and report investment income for income tax purposes.