Cenovus Energy Inc T.CVE

Can you be Long and Short on a stock at the same time with

[RagingBull3]

same brokerage?    Reason for asking is was wondering if Shorting could be used to lock in Capital Gains on Long Positions instead of using Hedges in the futures market.    I'm thinking if so, this would be useful if you want to lock in your Capital Gains without selling and triggering Capital Gain Tax when you have no Losses to offset gains.   Once you have some losses, then you unwind the shorts and sell your shares triggering the Capital Gains.

Anyone know or actually done this?

Basically,   looking how to time things to pay less TAX.


All just my opinion/view/thinking/wondering.

[shareholders1]

My rough guess is this will not fly, even if you sell short in a separate "Short" brokerage account, or even if the "Short" account was at a different brokerage.  Reality is if you own say 1000 shares, "selling short" 1000 in another account means that economically you have no more CVE shares left. So you will have your capital gain. It may be different if say

[RagingBull3]

Thanks for the response Shareholders1.    It didn't occur to me that capital gains from short sales could be fully taxed.   I did a quick look on the net to see if I could find anything about Capital Gains on Short Sales but didn't find anything, but I didn't look too hard.   I only shorted once in my life and the broker called me up and demanded me to

[Dillbertt21]

A short used to hedge a long position can be reported as a capital gain or loss per CRA. Normally short gains and losses are reported on income account. Submitting a T123 allows you to elect reporting short sales on Capital account for Canadian stocks.  This is a onetime election and can never be reversed.

[RagingBull3]

Thank You Dilbertt21.    T123 also says it applies to a taxpayer who also is a member of a partnership.     It is unclear to me if this statement means to included individuals/taxpayer who are also member of a partnership or if ONLY individuals/taxpayers who are a member of a partnership can elect to use this form. What's your interpretation?  I'm just a