Post by
TrumpThis on Dec 03, 2020 2:37pm
Tax Loss BUZZ
Tax Loss season is over-rated as a cause for downward pressure as there is always brokerages manipulating the SP, playing with others money, or borrowing stock from their clients accounts to bet. True there are lots of portfolio managers buying winners only to find theyre really losers, which is one reason for year-end tax loss selling. As an individual investor in Canada, you can only sell in your Cash or Regular account to generate a loss IF you sell below your purchase price. Tax-loss selling (or tax-loss harvesting) occurs when you deliberately sell a security at a loss in order to offset capital gains in Canada. You can then use these losses to offset your taxable capital gains. The money you invest in a Registered Retirement Savings Plan (RRSP) grows tax-deferred until you withdraw it. Any losses on the investment within the RRSP are not able to be claimed as a capital loss against your RRSP. The Canada Revenue Agency (CRA) views it as a loss that cannot be deducted. TFSA also can not have tax deductible losses. Im not an accountant, but this is my understanding, so sell your losers any time of year, educate yourself on the companies you invest in, dont gamble, know what you are doing. If you can predict, use your TFSA for your biggest gainers, like TRO. GLTA this year of Covid disruption.