If you are looking to implement a tax loss harvesting strategy, here are 3 restrictions for you to consider.
- Repurchase the property within 30 days
- Reacquire the same property within 30 days using different brokerages
- Have an Immediate family members company acquire the same property within the holdover period
1. Repurchase the property within 30 days
You can not buy the same or identical property 30 days before or after the day you dispose of the property. This means that if you sell a property on December 29th, 2022, you can not buy that same property back on January 2nd, 2023 otherwise that loss will be denied.
2. Reacquire the same property within 30 days using different brokerages
You can not sell a property using one brokerage, such as Questrade, and then go and buy it back using a different brokerage like Wealthsimple, to get around the 30 day holdover period. Your loss will be denied.
3. Have an Immediate family members company acquire the same property within the holdover period
You can not have your corporation, your spouse, or your spouse’s corporation buy the same or identical property that you dispose of.
If you have any questions about implementing a Tax Loss Harvesting Strategy call BBS Accounting CPA today!