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Offsetting capital gains with capital losses
Did you have a capital gain during the year (for e.g. you sold some stocks at a gain)? You can decide to sell other holdings at a loss (capital losses) to offset your capital gains and minimize taxes. Both capital gains and capital losses need to be in a non-registered account.
It is important to note that in the CRA’s eyes, a capital loss is triggered on the settlement date (not the trade date). The settlement date is typically 2-3 days after the trade has been made. Based on this and considering the markets are closed during the holidays, it is recommended to trigger any capital losses before Christmas.
Superficial loss rules
If you repurchase the same or a similar security within 30 days of the sale, CRA deems that a superficial loss has occurred.
FAQ
Can I use capital losses from bonds to offset capital gains from another asset class like stocks (or vice versa)?
Yes, a capital loss is a capital loss whether it is a stock or a bond (or bond fund) generating the loss.
