Personal Finance

Tax question - Stock losses

  • Last Updated:
  • May 1st, 2021 12:28 am
[OP]
Sr. Member
Sep 22, 2010
562 posts
608 upvotes
Victoria

Tax question - Stock losses

Hi everyone,

Here's my dumb question of the day. Feel free to shake your head in disgust and curse me under your breath. ;)

In my younger more reckless days I made some poor investment choices and came out on the losing end of things. In my naivete I assumed that come tax time, I would get tax slips that would show my losses. It appears that is not the case.

How does one go about declaring a loss on a stock?
Do these losses have to be declared in the year in which the stock was liquidated?
Given that is is now 2021, and these stocks were liquidated in 2010, am I still able to declare these losses, or am I too late?
If I am able to declare the losses, what kind of documentation do I require?
How do I deal with the currency conversion from 2010? I had one from the TSX-V in CAD, and a few from the Nasdaq in USD, and one from the NYSE in USD.

All told I took a loss of around $18k. I'm hoping I can recoup a bit of that through offsetting gains sometime down the road.

Thanks everyone for any advise you can provide,
C.
8 replies
Sr. Member
May 24, 2018
508 posts
318 upvotes
Ontario
:facepalm: Looks like it is a few months too late ➡ https://www.canada.ca/en/revenue-agency ... eturn.html

(2021-04-30) Regarding converting trading gain/loss in foreign currency to CAD for tax reporting purpose, you may learn something (I do) from a recent conversion between JayTee1 & threadhead starting this RFD thread entry #5972 (Apr 27th, 2021 2:03 pm)tax-time-im-public-accountant-so-ask-me ... #p34404449
Last edited by hwyc2007 on Apr 30th, 2021 10:37 am, edited 1 time in total.
Deal Fanatic
Feb 4, 2015
6888 posts
3151 upvotes
Canada, Eh!!
Suggest to try anyways by snail mail.

Perhaps they will understand due to pandemic.
.......
July 13, 2017 to October 25, 2018: BOC raised rates 5 times and MCAP raised its prime rate next day each time.

2020: BOC dropped rates 3 times and MCAP waited and waited to drop its prime rate to include all 3 drops.
Jr. Member
Apr 22, 2010
167 posts
56 upvotes
Toronto
I believe you can carry forward your capital losses indefinitely. But you may need to do a T1-ADJ to report the capital loss. As Hwyc2007 mentioned, you might be too late though to adjust the tax return. But you could call CRA and see what they suggest (given it is a pandemic).
In terms of foreign currency translation, I usually suggest looking at Bank of Canada rates, they have annual average rates.
Deal Addict
Nov 13, 2013
2871 posts
1555 upvotes
Ottawa
Yes it fan be carried forward until you need it. It can’t be used to offset other income only capital gains.
[OP]
Sr. Member
Sep 22, 2010
562 posts
608 upvotes
Victoria
georvu wrote: Suggest to try anyways by snail mail.

Perhaps they will understand due to pandemic.
I have reached out to the CRA and inquired about an exemption. They are reviewing the request and will get back to me.

Thanks for your input everyone. I'm an idiot.
Deal Fanatic
Feb 4, 2015
6888 posts
3151 upvotes
Canada, Eh!!
calvados.boualrd wrote: I have reached out to the CRA and inquired about an exemption. They are reviewing the request and will get back to me.

Thanks for your input everyone. I'm an idiot.
You went ahead and made the effort so definitely not an idiot.
.......
July 13, 2017 to October 25, 2018: BOC raised rates 5 times and MCAP raised its prime rate next day each time.

2020: BOC dropped rates 3 times and MCAP waited and waited to drop its prime rate to include all 3 drops.
Deal Addict
User avatar
Dec 24, 2007
1554 posts
1854 upvotes
BC
calvados.boualrd wrote: Do these losses have to be declared in the year in which the stock was liquidated?
Given that is is now 2021, and these stocks were liquidated in 2010, am I still able to declare these losses, or am I too late?
If I am able to declare the losses, what kind of documentation do I require?
Yes, they need to be declared in the year the stock was liquidated as there may be changes in the taxable rate for the year in question: right now it is 50% but there are other years that it was not.

As long as what you are doing it is updating tax records and not the amount of tax payable, you should be able to do it. It might take a bit of effort to get to the right people to update the records asthe system is built for making adjustments to tax payable. You need to be make it clear to whoever you are dealing with, that you are not trying to change your tax payable amount (as there is a 10 year limitation on that) but trying to change your capital loss balances on record (there is no limitation on that as it is record keeping).
[OP]
Sr. Member
Sep 22, 2010
562 posts
608 upvotes
Victoria
WetCoastGuy wrote: As long as what you are doing it is updating tax records and not the amount of tax payable, you should be able to do it. It might take a bit of effort to get to the right people to update the records asthe system is built for making adjustments to tax payable. You need to be make it clear to whoever you are dealing with, that you are not trying to change your tax payable amount (as there is a 10 year limitation on that) but trying to change your capital loss balances on record (there is no limitation on that as it is record keeping).
Thanks. I have already submitted the request, but I will let them know that when they reply. Thanks for the very helpful information.
C.

Top