Superficial lossBe 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:
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