Sentences with phrase «superficial loss»

If you make a loss then you can't claim it (superficial loss rule).

Based on the rule, I have many superficial losses on some of my picks, and as a result, would like to know how to interpret this in my scenario.

If these 22 shares are not sold by the end of the 61 - day period, a partial superficial loss will occur.

Clearly, the tax rules are tricky here: speak to a tax professional if you're unsure about how the rules apply to taking superficial losses or transfers - in - kind generally.

I am afraid of superficial loss rule.

Mutual fund distributions often occur in December, which can create superficial loss problems if sold in January, Ardrey says.

@Michael: I would think that VCE and XIU will not fall under superficial loss rules.

Nice try, but «the [superficial loss] rule applies whenever the same property is bought within 30 calendar days before or after the sale of the original property.»

I do have the option of buying back NBD after the 30 - day superficial loss rule lapses, but I do admit that currently I believe I can find better opportunities for my investable capital elsewhere.

If you are considering making use of tax - loss selling to minimize capital gains in Canada, you should also be aware of the «superficial loss rule.»

By enrolling in DRIPs through your brokerage account, you may be inadvertently setting yourself up for partial superficial losses.

While this can be a strategy, you have to stay out of the security you sold for 30 days, or the loss will be deemed a «superficial loss» and can't be used against capital gains.

You'll want to be careful to avoid a superficial loss, which occurs when someone sells a stock and then buys it back within 30 days.

Just remember to not buy back the same stock within 30 days in your RRSP, as this is considered a «superficial loss» and is not allowed by CRA.

Since it's not the same asset, it's not a superficial loss, and still allows you to maintain your desired portfolio diversification / exposure.

In addition, the government does not grant tax loss selling benefits when a sale results in what's called a superficial loss.

(It will also be deemed a superficial loss if your spouse holds the same security.)

Here's an easy — and perfectly legal — way to get around Canada Revenue Agency's dreaded «superficial loss» rule.

If she does, your capital loss could be deemed a «superficial loss» by Canada Revenue Agency, and you won't enjoy that same tax benefit.

The «superficial loss» rules «essentially prevent the realization of a loss on the disposition of capital property if you reacquire «identical property» within 30 days after the disposition,» according to Cary Heller, a Tax Partner at Collins Barrow Toronto LLP.

You also need to be aware of the «superficial loss» rule, which is designed to prevent investors from selling a stock to claim a loss, and then buying it back right away.

The superficial loss rule would not apply because you don't hold the position anymore.

BTW, just in case there's confusion, even when the superficial loss rule is triggered, your capital loss is NOT LOST.

(The 30 days between settlement dates would have allow you to avoid the superficial loss rule.)

In his discussion of tax - loss harvesting, Fok Kam explains how you can run afoul of the superficial loss rule by purchasing a security before selling shares to crystallize a loss.

You can sell the stock, wait 30 days, and then buy it back inside your TFSA account, but check the superficial loss rules first.

Understand the superficial loss rule.

As long as the replacement ETF tracks a different index you'll maintain your exposure to Canadian stocks while also steering clear of the superficial loss rule.

If you are considering making use of a tax - loss sale to minimize capital gains in Canada, you should also be aware of the «superficial loss rule.»

If you cycle through and then rebuy the first one you need to make sure it is not considered a superficial loss and therefore would be disallowed by the CRA

If you want the same security in the TFSA, you'll need to wait at least 30 days before repurchasing it in order to avoid the superficial loss rules, or buy a similar security (many ETFs serve an almost - identical asset class) or buy an entirely different new security.

And if you sell your current fund at a loss in a non-registered account, you may not be able to claim the capital loss unless you wait 31 days before purchasing the D - series version of the same fund, because of the superficial loss rule.

That's called a «superficial loss» and CRA will disallow your capital loss claim.

I'm sorry for using the term «wash sale», which is a US term for «superficial loss».

Charlie: Your RRSP is considered to be arms length, so an immediate purchase of the same security within your RRSP isn't considered a «superficial loss».

Given the 30 day rule to avoid a superficial loss I think you have a typo there.

Make sure the replacement ETF does not track the same index as the one sold, as CRA may have a problem allowing you to claim the loss in the first place if they think you have generated a superficial loss.

Consult a tax professional to make sure your actions are not violating the superficial loss rules

Better to sell the stock first, wait for 30 calendar days to avoid the superficial loss rules, and then repurchase the stock in your TFSA.

During this 30 day period, we held onto the secondary fund (DFA256) in order to avoid the superficial loss rules (which would take effect if we switched back to the primary fund too early).

Second, it's important to remember that if you buy back the stock within 30 days of the settlement date of the sale, the CRA will consider it a «superficial loss» that can't be used to offset capital gains.

If you swapped one for the other, would the CRA call this a superficial loss?

As a side note, you should consider the superficial loss rule if you are attempting the Smith Manoeuvre (SM).

If you do, it will be deemed a superficial loss and the CRA won't let you use it to reduce your taxable gains.

@Curt — if you purchased an underlying stock held by XEI anytime during the 61 - day period, the superficial loss rules would generally not apply.

If that's true, then selling IVV to buy VOO would indeed be considered a superficial loss, and so would selling TD's Canadian Index Fund to buy RBC's.

Can I sell XEI (iShares S&P / TSX Composite High Div Idx ETF) for tax loss selling purposes... Meanwhile picking up common shares of an individual company that is a component of that basket... Or does that initiate the superficial loss rule?

Otherwise, the sale will be considered a superficial loss, and you won't be able to use it to reduce your taxable capital gains.

Does the superficial loss work (almost in reverse) if one shorts a stock, then buys it later at a higher price to bring one's position to zero, and THEN buys it long, sells it at a profit all within 30 days but without realising an overall profit?

The tax rules state that a superficial loss occurs when an investor sells and repurchases an identical property, which CRA defines as «properties which are the same in all material respects, so that a prospective buyer would not have a preference for one as opposed to another.»