Q: Hello Peter and 5i team,
In the question and answers section I remember you answering questions regarding the ¨tax loss selling rule¨ in a non-registered account. I would like your opinion on the value of this strategy and how to use it efficiently.
This year is exceptional and I have capital gains to declare for 2014 in my non-registered account. In order to reduce my capital gains I’m considering selling two stocks that got hit hard since I bought them Serge Energy down 39.8% and Teck Resources down 55.6 %. Selling this two stocks would reduce my capital gains and therefore I would save about 1 400 $ on taxes for 2014.
Here is where I see a catch 22 situation if I buy back the two stocks after the 30 day ¨tax loss selling rule¨ and on a proportion of the number of stocks in question if SGY has done up .38 per share and TCK.B 1.50 $ per share it would cancel the 1 400 $ savings.
My first question is can I replace SGY with a similar energy stock and TCK.B with a similar materials stock in case of bounce back of the market during the 30 day period? Second question what two stocks would you recommend in case of a bounce back for the 30 day period? Last question have I missed something or goes this seem a good strategy. Thank you for your guidance, Ronald
In the question and answers section I remember you answering questions regarding the ¨tax loss selling rule¨ in a non-registered account. I would like your opinion on the value of this strategy and how to use it efficiently.
This year is exceptional and I have capital gains to declare for 2014 in my non-registered account. In order to reduce my capital gains I’m considering selling two stocks that got hit hard since I bought them Serge Energy down 39.8% and Teck Resources down 55.6 %. Selling this two stocks would reduce my capital gains and therefore I would save about 1 400 $ on taxes for 2014.
Here is where I see a catch 22 situation if I buy back the two stocks after the 30 day ¨tax loss selling rule¨ and on a proportion of the number of stocks in question if SGY has done up .38 per share and TCK.B 1.50 $ per share it would cancel the 1 400 $ savings.
My first question is can I replace SGY with a similar energy stock and TCK.B with a similar materials stock in case of bounce back of the market during the 30 day period? Second question what two stocks would you recommend in case of a bounce back for the 30 day period? Last question have I missed something or goes this seem a good strategy. Thank you for your guidance, Ronald