Quote:
Originally Posted by SeeGeeWhy
I'm no accountant, but this is what I think.
Your adjusted cost base becomes 1.05 after the second transaction. You then sell 3,000 shares at a loss of 0.05/share, so you've got a capital loss of $150 on the books.
I think you can use apply this loss backwards 3 years (someone will for sure clarify this for me), use it this year, or carry it forward indefinitely. It can only be used to offset capital gains, not earned income (salary, interest, etc).
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This is correct
Quote:
Originally Posted by Ducay
Your question is worded weird, but you can take the capital loss you just incurred ($150 and apply it against any other capital gains you had in 2009, 2008, 2007, or 2006.
You have to apply it against capital gains you've realized. So if on your 2006 taxes you reported (for example) $1000 capital gain. You can carry the 2009 $150 loss back against that gain. (so it becomes $850 capital gain in 2006).
If you havn't sold the shares, you havn't incurred a loss. The loss can also be carried forward against gains for up to 7 years.
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The bolded part is incorrect, Capital Losses can be carried forward indefinitely. The rest is correct.
Another source: http://www.taxtips.ca/filing/capitallosses.htm
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