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TSI Network
Patrick McKeough is one of Canada’s top safe-money advisors. The Wall Street Journal, Forbes and The Hulbert Financial Digest have all recognized his ability to find stocks with hidden value. He is editor and publisher of The Successful Investor, Stock Pickers Digest, Wall Street Stock Forecaster and Canadian Wealth Advisor; inventor of the Quick Profit/Value System and the ValuVesting System™. A best-selling Canadian author, he wrote Riding the Bull, the book that predicted the 1990s stock-market boom.

Tax Loss Selling

What is tax loss selling?

Tax-loss selling occurs when you  sell a security at a loss in order to use that loss to offset capital gains in Canada. By using these losses to offset your taxable capital gain, you can save on income tax.

For example, if the deadline for tax-loss selling on the Toronto Stock Exchange was December 24, 2016 and you sold at a loss on or before that date, you could deduct your loss against your 2016 capital gains. However, you can also carry your loss back for the previous three years to offset capital gains in Canada, or carry it forward indefinitely, to offset past or future capital gains.

If you are considering making use of a tax-loss sale to minimize capital gains in Canada, you should also be aware of the “superficial loss rule.” This rule states that if an investor, their spouse or a company they control, buys back a stock or mutual fund within 30 days of selling it, they are not permitted to claim the capital loss for tax purposes. Failing to obey the 30-day rule will result in the capital loss being disallowed.

Tax loss selling can be an effective way to lower your capital gains tax. To continue profiting from your investments in general, use our three-part Successful Investor strategy:

1. Invest mainly in well-established companies;
2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
3. Downplay or avoid stocks in the broker/media limelight.

Discover how to turn capital gains taxes to your advantage in this free special report, Capital Gains Canada: 7 Secrets for Managing your Canadian Capital Gains Tax Liabilities, from TSI Network.

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If you’re looking for stock-market bargains, December is the best time of year to find them.

Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.

Toward year-end, it occurs to these investors that …read more »

Yesterday on TSI Network, we gave you our stock trading advice on Aastra Technologies (symbol AAH on Toronto), one of the investments we recommend in our new free report, “Tax-Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the New Year.”

Today, we analyze another company that could soar in the wake of tax-loss selling season, Manitobaread more »

The year-end tax-loss selling season can create great stock-market bargains, because it puts temporary downward pressure on stocks that have been weak during the year. But the best of the bunch can put on spectacular recoveries after the season ends on December 24.

In our new special report, “Tax-Loss Selling: 7 Christmas Stocks That Could Give You Huge Gains in the …read more »

If you’re looking for stock-market bargains, December is the best time of year to find them.

Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.

Toward year-end, it occurs to these investors that …read more »

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In today's economy, it's more important than ever to have clear investment advice that is tailored to your own personal goals. This is where Pat McKeough's conservative safe-investing philosophy comes in. Through TSI Network, you get access to reports, monthly newsletters and premium services that go beyond the daily headlines to give you all the advice and information you need to build a portfolio with long-term growth potential. Simply click on the links below to discover which service is right for you.

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