TSX:HSE.PR.B - Post Discussion
Post by
OILGENIE on Dec 17, 2020 10:15am
soon it will pop 12
The last days of the year are approaching and with them, the last chance to harvest capital losses for tax purposes.
The practice known as tax-loss selling involves selling investments in a loss position to offset the capital gains realized by other investments. While this practice has no effect in tax-sheltered accounts such as RRSPs and TFSAs, in a non-registered account, tax-loss selling allows a client to reduce their capital gains tax liability.
Net capital losses can be carried back three years or carried forward indefinitely to offset net capital gains in other years. Sales of securities must settle within the calendar year in order to offset capital gains realized in the same year (or previous three years).
The last day to tax-loss sell Canadian-listed stocks is Dec. 29. Trades executed on Dec. 30 and 31 will settle on Jan. 4 and 5, 2021, respectively — making them ineligible for tax-loss harvesting in 2020. (On another note, Dec. 31 is the last day to make a donation to registered charity that can be claimed in the 2020 tax year.)
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