Personal Investor: Turn capital loss into tax gain
Despite making some bad investments, your losses may provide some financial benefit to you. Provided, you have some gains from other investments within the last three years, then you can reduce the amount of money you owe tax on by deducting your losses from them. In this way, you can reduce the capital gains tax you’ll need to pay on your returns. This strategy, known as tax-loss selling and is a common practice often deployed at the end of the year to lower a tax bill. There are, however, some stipulations such as that you can’t repurchase the stock you sold at a loss until after 30 days, and it has to be outside an RRSP or a TSFA.