Selling mutual funds and superficial losses
I've got some bond mutual funds in my non-registered account that I'd like to sell. If I sold today, I would be taking a loss. I'd like to sell them all (fully divest) and then re-purchase them in my registered account.
I mostly want to "move" them to my registered accounts because of the yearly tax implications of the bond fund distributions but a capital loss wouldn't hurt either.
I wanted to ask:
1) Under the superficial loss rule, I would be able to claim the capital loss as long as I don't purchase any similar funds 30 days before or 30 days after I sell (including DRIPs and registered accounts). I get monthly distributions from my fund, but they are in more units - I never get cash. Are the monthly distributions given out by my mutual funds considered purchases? If so, it is even possible to stop those?
2) If I'm not interested in claiming the loss at all, does CRA even need to know about me selling it? It isn't a huge loss and the real goal is moving the fund into registered to save the tax on yearly distributions.
I mostly want to "move" them to my registered accounts because of the yearly tax implications of the bond fund distributions but a capital loss wouldn't hurt either.
I wanted to ask:
1) Under the superficial loss rule, I would be able to claim the capital loss as long as I don't purchase any similar funds 30 days before or 30 days after I sell (including DRIPs and registered accounts). I get monthly distributions from my fund, but they are in more units - I never get cash. Are the monthly distributions given out by my mutual funds considered purchases? If so, it is even possible to stop those?
2) If I'm not interested in claiming the loss at all, does CRA even need to know about me selling it? It isn't a huge loss and the real goal is moving the fund into registered to save the tax on yearly distributions.
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