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Tax loss selling and buying back

3782 Views 3 Replies 4 Participants Last post by  leslie
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 .

1 - 4 of 4 Posts
Look up Superfical Loss Rules on CRA web site, and Google articles on same topic.
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.
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