What is a Capital Loss?
It’s simply where you sell a stock in your non-registered portfolio for a loss. From here, it just seems like a loss, but there is a bright side. Unlike investments within your RRSP (or TFSA), capital losses within a non-registered portfolio can be claimed against your capital gains for the year (or previous years). Here are some important facts about capital losses: • Capital losses can only be claimed on investments within taxable investment accounts. • Only 50% of capital losses can be claimed. • Capital losses can be claimed against capital gains in the current year, up to 3 previous years or carried forward indefinitely. However, it can be claimed against income on the year of the tax payers death (comforting hey?). • Tax loss selling must be made before December 24 of that year as it takes 3 days to settle the trade.
