There are huge benefits in what you have itemized. Not only did you get to deduct the amount you paid for the stock, when you contributed it into your RRSP, but now you don't have to pay taxes on the withdrawal of all the money you would have had to, if the stock had gone up.
A very nice happy ending.
no it's not a happy ending.
it's take your money & funnel it down into a bankrupt black hole in return for a paltry tax deduction. Somewhere in cmf forum the OP posted his earned income figs, the tax deduction would not have been particularly significant.
keep this up & sooner or later the funneller loses everything. Doesn't matter if he saves a couple $ via small deductions on pay. The point is he has no savings. The capital is gone.
keep it up on a broad public scale & the nation hurts too. No income to collect taxes on, rrsp wasted, bankrupt old age, future homeless to support ...
Sorry, I should have pointed out that I was kidding.
Where did you get the impression that I have no savings? I'm putting roughly $2000 away each month separate from what I've "invested", and my wife has almost equal savings to me... Between the two of us we have around $80k in savings separate from investments..
Yes, this was a bad investment. Yes I've made other bad investments. But, having not even mentioned the amount that I gambled on this one I think you're jumping the gun a little by thinking I'm going to be bankrupt and homeless in my old age.
just kidding also.
but seriously you are missing not just the main course but the entire meal. You are jumping from cocktails to after-dinner mints & coffee.
when you arrived here you said, simultaneously, that you knew nothing about investing but you wanted to "play at day-trading." It was like a 4-year-old waving around a box of matches & striking them by 2s & 3s & throwing the lit burners all over the dry furniture.
since you have serious savings & a wife, all the more reason to settle down & start learning how to manage your financial life.
For the record, when this happens, it takes 24 hours and then the shares are converted in Questrade to the new pink sheets and one is able to sell whatever remains.
Hmmmm ... so has it gone bankrupt? It sounds like it has shrunk to a smaller, troubled company.Originally Posted by JustAGuy
I've had a couple companies go bankrupt, including having the assets sold by the trustee in a taxable account. End result was that I couldn't sell to get anything out of it. Fortunately, in a taxable account I could still declare the capital loss and make use of it.
Hopefully the amount was small and you've learned your lesson. To be clear, the issue is the loss has destroyed the RRSP contribution room with absolutely no benefit.
That's why I prefer to focus on more conservative choices in a registered account.
Cheers
But you already received a tax benefit. If you think about it, depending on your tax rate, something like 20 - 50% of the loss was taxes you didn't pay. You are gambling with the government's money. If you win, they get a cut down the road, if you lose, they lose too.
Yeah, they filed chapter 11. They go to public auction next Friday.
It was $3600 that I bought, and I got $350 of it back... big enough to be disappointed in myself.
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