Capital Gains & Losses Reminder
Last year we sent a letter to many of our personal tax clients who had reported capital gains in the previous three years. In our letter we recommended realizing capital losses to “carry back” against the capital gains to generate tax refunds.
This year we are sending the reminder by e-mail. If you have had capital gains in the last three years that have not been “wiped out” by carrying back capital losses please consider selling some of your stocks if they are in loss positions. You can use these losses to obtain refunds of taxes paid on the capital gains of the previous three years.
Please remember to realize capital losses equal to twice the amount of the reported taxable capital gains.
Also note that you should sell the shares before December 25th if they are listed in Canada and before December 30th if they are listed on a US exchange. You should not re-purchase them within 30 days of selling them.
Please give us a call or send us an e-mail if you have any questions.