# Question about taxable gains and losses



## balk (Dec 6, 2010)

I have a question about a possible taxable loss. I currently own shares of SunLife with an ACB of around $27. If I bought shares today and sold them tomorrow would I be able to lower my ACB and claim a capital loss? Do I have to hold the shares for a certain number of days? 

I know that if I were to sell and then rebuy, that I would have to hold them for 31 days to avoid a superficial loss, but I was wondering what would happen if I purchased the shares first.

Thanks for your help in advance.


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## cardhu (May 26, 2009)

No, you couldn't claim the loss in your example. Your ACB would remain more or less unchanged (it'd be lowered by the purchase, and then bumped back up by the superficial loss). 

There are two tests for superficial loss ... 
1.	a replacement property is purchased within 30 days before or within 30 days after the date of the sale; and 
2.	the replacement property is still owned 30 days following the date of the sale. 

Note the use of the word “and” ... this means that both tests must be met for the loss to be deemed superficial ... if only one test is met and the other is not, then the loss is not superficial.


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## balk (Dec 6, 2010)

Thanks for the reply.

Just to clarify, if I bought SunLife, I would have to hold it for 30 days before I sell to avoid the superficial loss?

Thanks,

Balk


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## omegacanuck (Jun 16, 2011)

balk said:


> Thanks for the reply.
> 
> Just to clarify, if I bought SunLife, I would have to hold it for 30 days before I sell to avoid the superficial loss?
> 
> ...


Actually, the opposite. If you sell it, you have to NOT hold it for 30 days before you rebuy to avoid the superficial loss.


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## CanadianCapitalist (Mar 31, 2009)

Check out the CRA website for a very good explanation and examples of superficial loss rules.

http://www.cra-arc.gc.ca/tx/ndvdls/.../lns101-170/127/lss-ddct/sprfcl/menu-eng.html


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## zylon (Oct 27, 2010)

Yikes! what a convoluted way of explaining something.

Why couldn't it just say, "buying within 30 days before or after the sale, constitutes 'superficial loss'"?

I vote for Clear Language and Design to be used at CRA.


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