The capital loss is then
claimed against capital gains to reduce taxes.
Not exact matches
Investors need to be compensated for taking a risk and one of the mechanisms the Canadian tax structure has in place to do that is to
claim capital losses
against capital gains.
Another important catch however is if you decide to invest the money in your TFSA in a stock and you suffer a loss on the stock, you can't
claim the
capital loss
against any
capital gains.
Another advantage of keeping your
capital appreciating stocks outside of an RRSP is because you can
claim your losses
against your
gains to reduce your taxes payable.
There's not a lot you can do to avoid the
capital gains other than selling your losing stocks to
claim the
capital losses
against your
gains.
If you sell an investment at a
capital loss, you can
claim that loss
against other
capital gains for the year; or if you have none, you can carry the loss back up to three years to offset other net
capital gains reported on your previous income tax returns; or you can carry forward the loss to
claim against future
capital gains.
Based on these sources,
claiming rental losses
against other incomes in a given year is allowed as long as a profit is made over the life of the investment, excluding the effects of
capital gains.