The idea behind the gifting of shares to the broker is to create a formal record that you no longer own them, i.e. your position is now officially closed with proceeds of the "sale" = zero. You report the loss by itemizing it on Schedule 3 against your adjusted cost base. It doesn't matter that the share position wasn't closed out by a traditional trade, bottom line is that the property has been disposed of and that's what matters.JayTee1 wrote: ↑Dec 20th, 2018 9:40 pmI had to "gift" my broker some shares, because that particular stock is no longer able to be traded by a Canadian person anymore. The lady over the phone from my broker said that I would still be able to claim the losses.
Just wanted to confirm that I would be able to claim the losses and if so, how would I go abouts doing that? Because this will not show up as a part of my yearly trades as it was not considered a trade.
Note that you can only claim a capital loss against other capital gains, so if you have no gains to offset, you'll be carrying the amount forward and using it to reduce capital gains you report in future years. Having said that, I should probably add that if you reported gains within the 3 previous years, you could alternatively claim a loss carryback, but it somewhat depends on whether the loss is big enough and therefore meaningful enough tax-wise to go to the trouble of filing for a carryback rather than just carrying the amount forward until you consume it. I've had occasion to have done it both ways in my day.
https://www.canada.ca/en/revenue-agency ... osses.html