Q: I guess this is really a basic tax loss question. I wish to sell BNS in my non registered account which is mainly full of large dividend paying companies. Does it make sense to sell GSY ( at a profit ) , sell BNS ( at a loss ) and then rebuy GSY , thus taking advantage of tax loss provisions. It will also give me the advantage of a higher cost price for GSY for the inevitable sale. Should I do this procedure with the stock that has the most comparable gain to my BNS loss ?
Thanks. Derek.
Thanks. Derek.
5i Research Answer:
Because losses can be carried forward forever, such tactics don't really help so much. Yes, one can rebuy a stock and set a higher ACB, reducing a gain going foward. But the loss will still offset the same amount of gain if it is used later as well.