Sentences with phrase «superficial loss rule»

I am afraid of superficial loss rule.

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

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.»

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

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 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.

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).

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

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

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?

My question is regarding the superficial loss rule.

Not so fast, you have to make sure you don't violate the superficial loss rule.

This crystalizes the loss and to avoid the superficial loss rules you should avoid repurchasing the same security in your RRSP within 30 days; nor should you have bought the security 30 days before the sale.

To prevent investors from selling an asset to claim a capital loss and then buying it back right away, the CRA created the superficial loss rule.

Luckily, there is a way to legally avoid the superficial loss rule: You can repurchase a security that is similar, but not identical.

The superficial loss rule applies even if you sell the stock in a non-registered account and then buy it back within 30 days in your TFSA or your RRSP, or even an account owned by your spouse, or by a corporation you control.

But be mindful of the superficial loss rule, which prevents investors from selling a stock to claim a loss and then buying it back in right back.

If you made a profit, you should declare and pay income tax on the gains but capital losses are disallowed under the superficial loss rules.

Although the funds have similar holdings of large, mid, and small company stocks, they track entirely different indices (the S&P / TSX Capped Composite Index vs. the FTSE Canada All Cap Index), making them arguably different enough to avoid the superficial loss rules.

One final note: If you plan on lending stocks to your spouse, any capital gain is fully taxable but the superficial loss rules apply if there was a loss.

Any thoughts if there is a risk of triggering the superficial loss rule when selling your existing EFT and purchasing a Vanguard ETF?

Then they can immediately repurchase a similar but not identical ETF to avoid the superficial loss rule.

Some spouses prefer to keep their finances separate, but this too can cause issues when trying to avoid the superficial loss rule.