XXXX
R.A. Primeau (613) 957-2127
May 30, 1986
Dear XXXX
Re: Tax Treatment of Commodity Futures Income
This is in reply to your letter of April 3, 1986.
You indicate in your letter that you are a commodity futures speculator and have in the past reported the income and losses from this activity as "income and losses from a business".
In view of the recently enacted capital gains exemption provisions, you have asked whether Revenue Canada would accept your changing the method of reporting to capital gains and losses. We would not accept such a change, as indicated in the second sentence of paragraph 8 of Interpretation Bulletin IT-346R , a copy of which is enclosed.
We regret that we cannot give you a favourable reply.
Yours truly,
for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch