RE:Question re tax loss strategyRevenue Canada requires you to wait 30 days before buying the same stock back in order to claim a loss so don't try it. You can't buy it in a different account or spouse account either. We are smart but they aren't stupid.
B1gkatt wrote: For the first time in my life I am considering selling a stock on which I've taken a loss, not just to flee from it as far as I can, but simply to lock in a capital loss for tax purposes, then buy the stock right back. I'll let you all guess what stock I am talking about [Hint: it is not the old Czech ornamental glass blowing business from Medicine Hat, called Altaglass].
So how exactly does this work? Assume I am holding 20,000 shares right now, average cost of $25, have only been a buyer never sold any yet. Assume I then sell them all tomorrow at $15 then buy them right back two minutes later, also at $15. My initial loss on the sale is $200,000, that I can figure out. But what is my capital loss for 2018, given that I bought the shares back almost immediately at the same $15 I sold them for? Is it still a capital loss of $200,000 and I then wait to see what I eventually sell the "second batch" of 20,000 shares for, to determine whether I have a capital gain or loss on that second batch. Or is my capital loss for 2018 only $100,000 because my adjusted cost base has to take into account the cost of the second batch?
Would appreciate an answer from somebody who has done this kind of thing.
Thanks all!