2 July 2009 External T.I. 2009-0319211E5 F - T5008 : Contrat d'opération à terme (Futures) -- summary under Computation of Profit

A client of a brokerage goes long a futures contract on a particular Government of Canada bond series and subsequently closes out the position by establishing the opposite position on the same contract, namely a short position after, in the meantime, having posted or received amounts based on changes in the contract price and the corresponding maintenance margin requirements. In the particular situation, he realizes a gain of $2,600, being the appreciation in the futures price multiplied by the number of contracts in his long position, on closing out that position. CRA indicated that this amount should be reported as his gain on the T5008.