Question: “Can you please tell me how many days between the repurchase of an identical security must pass before I can claim the capital loss?”
If you dispose of investments and 30 days before or after the disposition, you, your spouse or an affiliated person, such as a corporation controlled by you and/or your spouse, purchase identical properties which continue to be held 30 days after the disposition, your capital losses will be denied. The amount of the denied loss is added to the cost base of the identical properties purchased, so the loss will be taken into account and become deductible when the identical properties are ultimately disposed of.
It does not matter what type of security is purchased nor the market. It only matters that the property is capita property.
Be aware that if you intend to transfer securities “in kind” to an RRSP, then the loss will be denied and lost. Also note that a sale of a security outside of an RRSP and a subsequent repurchase of the same security inside an RRSP will also result in a denial of the loss.
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{ 4 comments… read them below or add one }
I would appreciate if somebody could clarify how the supeficial rule works when refered to calendar year.
Let say on the 1 Oct. 09 I bought 1 share of X company for $1000. I sold this share on 20 dec. 09 for $500 (loss -$500) and the settlment date is 27 Dec. 09. Do I understand it properly – in order to claim capital loss for 2009, I can not buy the same shares of the same company until 27 Jan. 2010?
Ed
@Edward: You are correct. You can’t re-purchase until 30 days later (not it the re-purchase can’t settle before the 30 days are up).
One more clarification. What would happen if you bought 100 shares of XYZ for $1000 on October 1, 09 and without buying anymore, sold all 100 shares on October 25, 09 , 24 days later for $900 and never bought anymore that year. Would you have a $100 capital loss or is this considered a Superficial Loss?
Thanks Bern
It would not be a superficial loss.