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Hello, I'm new to this forum. I have also looked into whether the options trades I make should be treated as capital gains or income. I'm not an accountant, so I have no expertise in this area, but everything that I've read online has always left the criteria as unclear and fuzzy. I did want to point out some additional complications of deciding to claim your options trades as capital gains: There are some additional rules for handling of options when the selling/buying crosses the fiscal year end. This also mean you may have to refile your previous years taxes to do it properly. See this article on Taxtips.ca for a good summary. For Captial Gains - Canada has the superficial loss rule that covers 30 days before and 30 days after a transaction settles. This is meant to prevent tax loss selling (and then reaquiring the same shares) but it also applies to buying a call before or after selling shares. A good article that explains some details is here. This will depend on what options strategies you are using. Many of these complications go away if instead declare your profits/loss as income. One last thing I have come across - is don't forget to complete form T1135 (Foreign Property), if at any point during the tax year you owned foreign property over $100K. This includes: foreign stock, property, and insurance policies. Is does not apply to items held in TFSAs or RRSPs. There really isn't any tax implication, but the fines for not filing this are onerous.