Concordia Healthcare Corp. T.CXR.R

Superficial loss

[TOMMY1]

Be careful when selling to offset capital gains as the losses will not be recognised by CRA as capital losses if you have bought or sold within 30 days (before or after the sale date). These kind of losses are seen as "superficial loss".

This article provides more detail:

• https://www.theglobeandmail.com/globe-investor/investor-education/tax-loss-selling-if-youre-dumping-your-dogs-read-this-first/article21834856/

Definitiion from the CRA website:

What is a superficial loss?

A superficial loss can occur when you dispose of capital property for a loss and:

• you, or a person affiliated with you, buys, or has a right to buy, the same or identical property (called "substituted property") during the period starting 30 calendar days before the sale and ending 30 calendar days after the sale;and
• you, or a person affiliated with you, still owns, or has a right to buy, the substituted property 30 calendar daysafter the sale.

If you have a superficial loss in 2015, you cannot deduct it when you calculate your income for the year.

However, if you are the person who acquires the substituted property, you can usually add the amount of the superficial loss to the adjusted cost base of the substituted property. This will either decrease your capital gain or increase your capital loss when you sell the substituted property.

In certain situations, when you dispose of capital property, the loss may not be considered a superficial loss.

MirrorWorldMan wrote: "Shortexit" will likely take a little more time than Brexit to implement. They are a tenacious bunch and tend not to leave a stock quickly, be prepared for long term infestation where they either continually dump into any news or allow the buying to subside before selling once again.  Accepting the corrosive vertically challenged means they can be played as a catalyst, although investors need the stomach for it. On the bright side, trading while averaging down allows tax free incremental trades, as well as allow an investor to realize and record losses in trading accounts while maintaining the same holding. These can offset gains made elsewhere in a portfolio while maintaining the same exposure to CXR. I have other BT stocks that have had the highest short interest on the Nasdaq and have always played their swings without ever shorting or buying puts.  Having an average price below the analysts price targets,and eventually their desired covering prices are my general goals. Beat the shorts at their own game. GLTS

[TickerTwit]

This applies to capital gains only. If you are engaged in an "Adventure or Concern in the Nature of Trade" (as the CRA defines it), the superficial loss does not apply. .

[TOMMY1]

Thanks TT - good to know and I will have to put this by my accountant to see if my trades are eligible. I found some archived information on the CRA website but nothing current: https://www.cra-arc.gc.ca/E/pub/tp/it459/it459-e.html Thanks again!

[TickerTwit]

IT-459 is old (1980) but seems to be the most informative document the CRA offers at the moment. Some accounting firms publish additional info, such as case law examples where investors have challenged the CRA after being declared 'traders' (or conversely, wanting to be 'traders', but being declared 'investors'). Good that you have an accountant for a qualified opinion. .

[TOMMY1]

TT - Just been talking to CRA for a good part of 30 minutes as they were not so familiar with the IT-459 if you can believe it. I was referred to a more senior agent who did a good job of explaining it as well as eligibility. Basically, the IT-459 only applies to those who report their income on business basis so the capital gains / losses rules do not apply. If you report your income based on a

[TickerTwit]

This piece I did not know: "To report capital loss, you must sell ALL of your stock" Thanks for the going to the trouble! .

[LatticelnExile]

This post has been removed in accordance with Community Policy

[TOMMY1]

Lattice - I was just repeating what the senior advisor at CRA told me (Chris). Unlike you, I don't make s**t up. There is a reason you are in exile and you should just stay there for everyone's benefit as you have yet to provide anything of worth recently on this board besides your snidey little condescending comments. He (Chris) confirmed with me on several occasions that if you had

[JustforFun7]

I hate it when the "agents" there to "help" you steer you wrong.  Not unlike many "help desks". If your lucky enough to find a good  helpdesk  person  count your blessings.  But that is not different than anything, from mechanics to plaumber, doctors to lawyers....the quality really ranges quite a bit regardless of what you pay.  In

[BuyingNow]

Tommy, you are wrong on this one.  Rarely do I sell ALL of my position and It doesn't even make logical sense sense that CRA makes you sell ALL of your position for a capital loss.  You should not have posted it even if that is what the "advisor" told you.  If you are not sure and what you are told isn't confirmed correct, please don't post it because  bad

[HamSandwich]

wrong wrong wrong wrong wrong