I'm trying to figure out the superficial loss rules set by CRA...
if I'm frequently trading (or day trading) the same instruments,
what does it mean - that I cannot offset my profits with the losses?
would similar ETS's for example HNU:CA and UNG:US considered to be the identical instruments?
Any comments?
Thanks
if I'm frequently trading (or day trading) the same instruments,
what does it mean - that I cannot offset my profits with the losses?
would similar ETS's for example HNU:CA and UNG:US considered to be the identical instruments?
Any comments?
Thanks
Depends if it’s in accordance with http://www.cra-arc.gc.ca/tx/ndvdls/t.../menu-eng.html
Since those ETFs are on different exchanges, no, even though they are similar. I believe it’s only counted the same if they are the same or can be converted from one to another, ie convertible debentures.
Since those ETFs are on different exchanges, no, even though they are similar. I believe it’s only counted the same if they are the same or can be converted from one to another, ie convertible debentures.
let me ask you this way
I buy and completely sell the same stock - this is a transaction
thru the year I make 100 transactions like that,
and they are always not more than 30 days apart
some of them get me profit and some get me loss
total sum of of positive transactions is $1,000
total of negative is $200
what is the taxable amount $1,000 or $800?
I buy and completely sell the same stock - this is a transaction
thru the year I make 100 transactions like that,
and they are always not more than 30 days apart
some of them get me profit and some get me loss
total sum of of positive transactions is $1,000
total of negative is $200
what is the taxable amount $1,000 or $800?
well technically say i assume they were all within 30 days and everything was accounted for with no mistakes.
your taxable income for this stock would be a 400 at your marginal rate as you would expect.
afaik the superficial loss is mainly to stop people from easily off setting their cap gains or potential future cap gains. so say you have that 800 cap gain but at same time you bought bby and you noticed it was sucking but didn't sell it. so you sell it and buy it back thinking you can use the cap loss to offset the 800 cap gain so year end you don't pay anything. but this rule only allows you to claim a superficial loss.
your taxable income for this stock would be a 400 at your marginal rate as you would expect.
afaik the superficial loss is mainly to stop people from easily off setting their cap gains or potential future cap gains. so say you have that 800 cap gain but at same time you bought bby and you noticed it was sucking but didn't sell it. so you sell it and buy it back thinking you can use the cap loss to offset the 800 cap gain so year end you don't pay anything. but this rule only allows you to claim a superficial loss.
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