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Monday, January 10, 2011

Can capital losses be used to cover owing on RRSP sale?

Ok, so the question, I sold some RRSPs (under 5000$) so of course, I will owe money on taxes, approximately 1100$ to be exact. At the same time, I have approximately 1000$ in capital losses for 2010 on a terrible investment. My question is, can I take those capital losses and put them against the RRSP? I am fairly sure the answer is no- but when I had last checked it was for losses that had been carried over and not from the same year.

Thank you


And before people start asking why I sold RRSP's - it was probably the best decision I've ever taken. It helped me turn my finances around. My savings account has never been higher and we are now paying 33% extra on the mortgage each month since it allowed me to pay off all my debts. And with the markets going up nicely, my account is STILL higher than it was at the start of 2010 since I only sold the gains. 


No, a net capital losses can only be applied to offset net capital gains and not other types of income like RRSP withdrawals. They can be applied to previous years or carried forward however, so they aren't "lost" if you can't use them this year.

The exception would be if you were a day trader and was taxed as such.

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