Q: With yesterday’s drubbing following their results release, I have about a $12k capital loss on my TD non-registered holdings. I am an income investor and TD’s next ex-dividend date is Jan 10. If I sold my shares today, I could then repurchase them as early as Jan 6 and not put the loss at risk….correct? I have gains across pretty much all the rest of my holdings so picking up the loss now vs the potential price increase over the next 30 days seems an ok risk….do you agree?
5i Research Answer:
For a tax loss trade we would use January 8 as the date, to allow for legal settlement of trades (T+1 day). If a sale takes place today it does not settle until Monday. But this still allows time for a January 10 ex-dividend. We have additional comments here.