Posts Tagged ‘tax loss selling’

Should You Sell Your Dog Stocks?

The topic on Tax Loss Selling is very timely and every year around this time, people get busy with holiday shopping and forget to sell the “dogs” in their portfolio and as a consequence, they pay unnecessary income tax on their capital gains in April.

Most investment advisors are pretty good at contacting their clients to discuss possible tax loss selling. Ensure you are in contact to discuss your realized capital gain/loss situation and other planning options.

You may wish to set aside some time this weekend or next, to review your 2016 capital gain/loss situation. You can then execute your trades on a timely basis knowing you have considered all the variables associated with your tax gain/loss selling. As the markets have been strong this year, you hopefully will have only a few stocks with unrealized capital losses you can sell to use the losses against capital gains reported the last 3 years. Alternatively, you may want to trigger a capital loss to utilize against capital gains you have already realized in 2016.

You should be very careful if you plan to repurchase the stocks you sell. Always be cognizant of the superficial loss rules. Essentially, if you or your spouse (either directly or through an RRSP) purchase an identical share 30 calendar days before or 30 days after a sale of shares, the capital loss is denied and added to the cost base of the new shares acquired. 

This information was taken from an article posted by Mark Goodfield on his blog The Blunt Bean Counter. Visit    http://www.thebluntbeancounter.com/2016/11/tax-loss-selling-or-for-2016-tax-gain.html  for the complete article on this topic.