In a taxable account of Canadian equities I currently have some "loser stocks" with a capital loss of about $7000.
First question:
If I sell the “loser stocks” in a year when I have no capital loss can I claim this loss in a future year?
I found this that scared me “Capital gains can be offset with capital losses from other investments. In the case you have no taxable capital gains however, a capital loss cannot be claimed against regular income except for some small business corporations.” (
http://www.moneysense.ca/taxes/capital-gains-explained/)
At the same time I have "winner stocks" with a gain of $20,000.
Currently, I have not sold any stocks so this has not been realised.
But I have room in my registered accounts and I was thinking that I would transfer the "winner stocks" "in kind" into my TFSA. Even though they gained a lot, they are the lowest they have been in a while so now is a good time to “in kind” them over.
I understand that this will trigger a deemed deposition and I have calculated the tax at about ($20,000/2)*35% = $3500.
I wanted to offset this tax and I thought I could do that in two ways.
A) I could sell the “loser stocks”. Now my gain is only (13,000/2)*35% = $2275
(Not that much of an offset)
Or
B) I could purchase some RRSP with other cash, I think I need about $10,000 to offset the gain.
$10,000*35% = $3500 cash back
I am quite sure I can save the cash for the RRSP by the year end.
I also hope the “looser stocks” climb out, I am a buy and hold investor, and why sell low if I don’t need to.
Second & third Question:
Does my math and logic seam correct on how to offset the capital gain? Are there any pros and cons to A vs B I am missing?
Thanks!