RE:RE:RE:RE:RE:RE:RE:RE:analysisOh,yah, I agree "flipping " stock into a registered account is not permitted and claiming a tax loss is definitely not permitted. The point that is being queried, or at least the point I have questions about is the statement coop made and that s whether you have to dispose of ALL of your positions and in ALL of your accounts to claim a loss .... and I don't believe that you do .. of course I realize that a person would only have a claim to the shares that were disposed of (rather than the whole position - similar to when I cover a short position I only claim a gain for the portion that I have covered and the differential in ACB. Obviously I don't have to cover the whole position to crystalize a gain, so it doesn't make sense that I have to sell a whole position to crystallize a loss... but flipping it into a registered account is definitely a nono just like forming entities and transferring stock off shore is a no no as well without declaring a loss or gain at the time of transfer (cough, cough - not mentioning any names of course.... ) But thanks for the heads up and the links and will defintely check into it further. Thanks all.
TickerTwit wrote: I don't recommend you take my word for it, and clearly you haven't, and that's good. The superficial loss rule was created to avoid abuse, and using a registered account to flip the shares into is an obvious abuse. But leaving a position in your TFSA ... or in your wife's TFSA ... that seems to be tagged by a rigid reading of the "affiliated" text in T4037. If I were to have this conversation with a tax accountant, I would ask for concrete examples of how CRA interprets this.
As for partial dispositions, the T4037 text is clear on not owning identical property at the end of 30 days. If there is another way to look at it, it's not something I've seen in CRA documents. Again, I'd want the tax accountant to show me the goods.
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Juice004 wrote: You got it Dan.
DanKwong1958 wrote: Juice004, That is my interpretion as well. You just can't rebuy the same stock in the first 30 days of 2017 or the superificial tax loss trigger but how can you be forced to sell out of your tfsa and rrsp when gains are tax sheltered by definition?
Juice004 wrote: This is simply not true. What you have in your TFSA and RRSP's has nothing to do with your unregistered accounts for the purpose of claiming capital gains or losses. Once you take a realized loss you can apply against realized gains and you don't need to exit the position in its entirety let alone from all accounts.
Coop007 wrote: My understanding of revenue Canada is you cannot own the stock AT ALL
You will need to sell All stock for 30 days to claim cap loss, This as far as i see includes what you have in TFSA & RRSP
Please correct me ( nicely ) if im wrong
Thanks