Look up Superfical Loss Rules on CRA web site, and Google articles on same topic.
Tax loss selling and buying back
Can someone tell me, if I sold my losers on Dec 18/2009 (settlement date
Dec 23) and if I wanted to buy back, what is the earliest date I could buy
back . Could I buy back Jan 18/2010 (settlement date Dec 21); is it buy
date or settlement date .
Thanks.
Dec 23) and if I wanted to buy back, what is the earliest date I could buy
back . Could I buy back Jan 18/2010 (settlement date Dec 21); is it buy
date or settlement date .
Thanks.
1 - 4 of 4 Posts
Here's an article I wrote a while back on the superficial loss rule.
In past years I have asked the other contributors if they know the answer to that question - without answer. The tax wording does not specify whether the 30 days is between the transaction dates or the settlement dates.
For issues of "which year is the sale reported" it is the settlement date that decides it. For issues of foreign exchange rate used to translate into Loonies it is the transaction date. So take your pick for this issue.
The simple solution is to use the settlement date for the sale and the transaction date for the repurchase, just to be safe. Or just buy a similar security right away. Almost everything has a look-a-like twin.
For issues of "which year is the sale reported" it is the settlement date that decides it. For issues of foreign exchange rate used to translate into Loonies it is the transaction date. So take your pick for this issue.
The simple solution is to use the settlement date for the sale and the transaction date for the repurchase, just to be safe. Or just buy a similar security right away. Almost everything has a look-a-like twin.
1 - 4 of 4 Posts
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