Question

Superficial Loss - 30 day Rule

Forum|Forum|2 years ago
February 26, 2024
1 reply
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Hi there...looking for clarification on the superficial loss (30 day rule). In a non-registered investment account, I sold shares of a few stocks this past year. I have received a T5008 from the financial institution and entered this using the T-Slips entry screen in TurboTax. I did repurchase some of the stocks within 30 days and understand from CRA there is superficial loss -30 day rule. Do I need to make an entry in TurboTax for this? If so what entry screen do I use for this? Using TurboTax Desktop version.

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TurboTaxSusan

If you have a superficial loss, you can add the amount of the superficial loss to the adjusted cost base of the substituted property.

P

pageoneAuthor

Hi there Great. To confirm then, other than the T5008 information, there is no entry to make for the repurchase of the stock in the 30 day window in TurboTax. Of course, any purchase/sell of stock is to be tracked for ACB purposes. Is this correct?

G

GHarpe

TaxTips.ca - Superficial Losses and Other Disallowed Losses

I think the article explains this well. I ended up using a spreadsheet to determine the Superficial Loss for the stocks in question. For TurboTax, using the T5008 T-Slips entry screen, I entered amounts given in Box 20 and Box 21 for each stock listed on the T5008 I received. For any stock with a Superficial Loss, I entered the negative amount as a new entry in Box 20. The first T5008 stock entry would cause a capital loss if Box 20 is greater than Box 21. The second Superficial Loss stock entry would decrease the amount of capital loss claimed, based on the Superficial Loss (30 Day Rule) or, if the amount is large enough, zero out or cancel the capital loss from the first entry. End result for filing is either the amount of capital loss claimed is reduced or eliminated.

Happy to see you are on your way to filing.

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