Q: I've still got my now worthless XBC shares in my trading account. Seems its taking years to finalize the bankrupcy. Is there any benefit to leaving these shares or is it best to get rid of them and claim the loss? What do I ask the brokerage to do to get rid of these shares to produce the loss statement, since I can't sell them on the open market? Thx
5i Research Answer:
XBC's facilities have been sold and we think it is best to clear out the stock from accounts. Brokers are very familiar with this process and can provide the forms to fill out. Alternatively, one can still claim the loss without this, Note that there is no form for filing the election for worthless shares. Instead you have to include a letter with your tax return, indicating details of your shareholdings and that you elect to apply section 50(1) of the Income Tax Act to your shares. You must submit these documents even if you file electronically. But the former method is better as this will see the shares actually exit the account and investors will not have to look at the stock anymore.