A superficial loss is a capital loss the CRA disallows because you or an affiliated person repurchased the same or identical property within 30 days before or after the sale.
The superficial loss rule stops taxpayers from selling to trigger a loss while keeping the investment. If you, your spouse, or a corporation you control buys back the same or identical property within 30 days before or after the sale, and still holds it at the end of that window, the loss is denied.
The denied loss is not lost forever, it is added to the adjusted cost base of the repurchased property, so it is recognised later when you finally sell for good. The rule commonly catches tax-loss selling near year-end and transfers between personal and registered accounts.
You sell a stock for a $5,000 loss on December 20 and rebuy it on December 28. The loss is superficial and denied, but the $5,000 is added to the ACB of the repurchased shares for use on a future sale.
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