# Superficial loss rule, what about superficial gains?



## futuregrowth (Mar 5, 2012)

Hi everyone, 

I know about the superficial loss rule, but is there some other implication other than simple capital gains tax for selling at a profit and repurchasing the same stock (specifically ETFs in my case) within 30 days?

Thanks!


----------



## HaroldCrump (Jun 10, 2009)

Nope, it only works one way.
The CRA always taketh away, never giveth away


----------



## futuregrowth (Mar 5, 2012)

Thanks! I should have assumed that :tongue-new:


----------



## slacker (Mar 8, 2010)

haha, yeah.


----------



## Eclectic12 (Oct 20, 2010)

The gov't collects capital gains tax on a "superficial gain" so they have no problem with extra taxes.

Come to think about it, I'm guessing that a "superficial gain" would be when one understates the Adjusted Cost Base (ACB) so that the capital gain reported is more than it should be. For an ETF that has a Return of Capital (RoC) component, the most likely source of such an error would be reducing the ACB by more RoC than the ETF actually reported (ex. ETF reports $1 RoC for the time period the ETF was held but somehow in the math, $2 RoC is subtracted from the ACB resulting in a lower ACB than there should be and a higher capital gain reported).

Or I suppose just bad bookkeeping could also result in such an issue.


Cheers


----------

