Claritas Pharmaceuticals Inc V.CLAS.H

KingWhatsi - you are way wrong on the TSFA sale

[Dave4444]

You must be Canadian to have a TSFA, as such Canadian Income tax rules apply.  Ever hear of the "superficial loss rules"  if not you will.  If you sell or transfer losing shares into a TSFA you will lose the use of the capital loss forever.

Superficial loss rules kick in when you sell and then repurchase the shares within 30 days.   When you get the shares back within 30 days, you cannot use the loss, instead the loss reduces your cost for tax purposes of the new shares you acquired.  Problem with a TSFA is that since there are no gains or losses in the TSFA account, a reduction in the cost of the shares for tax purposes is useless and so the ability to reduce tax using the loss is gone forever.  What Jocotoco stated on the other hand, namely delaying sales until after the year-end so as to defer the tax payable on gains for a year, makes perfect sense and works just fine.  Only risk is you may have a gain in December but then see the stock price drop before you can sell in January.  I personally just take my profits when the markets offer them and then pay the tax.