\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

Tax-loss selling helps you reduce your taxable income directly. Here is how the numbers work when you realize a $5,000 profit and a $3,000 loss:<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t

\n\t\t\t\t\t

\n\t

\n\t\t\t<\/div>\n\n\t\n\t\n\t<\/table>\n\t

\n\t\tLoading..........\t<\/p>\n\t

\n\t\tThe Data is Not Available\t<\/p>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

In this scenario, you use the $3,000 loss to offset the $5,000 gain. Instead of being taxed on the original $5,000 gain, you are only taxed on the net capital gain of $2,000. This strategy effectively reduces the <\/span>portion<\/span> of your income that is subject to capital gains tax.<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t

\n\t\t\t\t\t

The Golden Rule: How to Avoid the \"Superficial Loss\" Trap <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tThe CRA’s Superficial Loss Rule denies a capital loss if you, or an affiliate, repurchase the identical investment within a 61-day window (30 days before\/after the sale). Violating this rule immediately denies the loss, causing the tax-saving strategy for security to fail.<\/span>\u00a0<\/span>\n\nThe scope of the Superficial Loss Rule is broad. An<\/span> affiliated person includes your spouse, common-law partner, or even your Registered accounts like an RRSP or TFSA. This w<\/span>ide definition prevents indirect attempts to claim the loss.\u00a0<\/span>\u00a0<\/span>\n\nIf the rule applies, the denied loss is added to the Adjusted Cost Base (ACB) of the newly purchased property. This specific consequence delays your tax benefit until the repurchased property is finally sold later (see <\/span>CRA: Capital Losses Deductions<\/a><\/span>).<\/span>\u00a0<\/span>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Why October is the Smart Time to Act <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tThe tax-loss harvesting deadline for 2025 is not over. October and early November are the best times to make sales. Selling this early gives you better flexibility and execution prices. This timing helps you avoid the heavy market pressure typical of late December. Waiting risks lower prices as many investors realize losses all at the same time.<\/span>\u00a0<\/span>\n\nSelling sooner also satisfies the CRA\u2019s 30-day Superficial Loss waiting period. The rule creates a 61-day window (30 days before and 30 days after the sale date). Selling now guarantees that you can repurchase the identical asset early next year. This is well before the final December cut-off, avoiding complex CRA issue<\/span>s\u00a0(see <\/span>Scotia Wealth: Important Tax Dates 2025<\/a><\/span>).<\/span>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Your Year-End Action Plan <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
Tax-loss selling is a powerful strategy. It requires precise planning and timely execution. The year-end deadline is quickly approaching. You must review your portfolio now. This ensures the tactic aligns perfectly with your long-term financial goals. For every loss you plan to claim, ensure you execute the sale by the final date. Do not wait for the final week of December. Use the current window for better price execution.<\/span>\u00a0<\/span><\/p>
Don’t risk costly mistakes with complex CRA rules; we execute the strategy flawlessly on your behalf. Legend Fusions is your trusted partner, converting market downturns into maximized, compliant tax relief that fortifies your future.<\/span> Book a free<\/span> consultation today<\/span>.<\/span><\/a>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t
\r\n\t\t\t\r\n\t\t\t\tReviewed by:\r\n\t\t\t\r\n\t\t\t<\/div>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
$\"Jeffery\"$ <\/figure>
Jeffrey Ross <\/p>
Jeffrey Ross is an experienced tax accountant focused on US-Canada cross-border taxation, with over three years in the industry, including a key role as client manager at a Canadian tax firm. He provides expertise in corporate and personal tax planning, specializing in non-resident tax, capital gains, CRA and IRS compliance, and retirement planning. Known for his personalized approach, Jeffrey is dedicated to guiding clients with clear, practical advice tailored to complex tax scenarios, aligned with the evolving tax laws. <\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\tLinkedin<\/span>\n\t\t\t\t\t\t