Superficial Loss Rules

Tax Topics
1

I have several clients that work for a large corporation and as part of their remuneration they receive stock monthly. Periodically they sell some or all of their shares and then within 30 days or less they receive a few more stock.

I feel like any capital losses would be denied due to superficial loss rules but I should then be adding the capital loss of the ACB of the next batch of stock. Just wondering if there are any rules about superficial losses that are specific to shares granted by a corporation vs. ones that you purchase voluntarily.

2

I believe you are right, these repurchases would get caught in the superficial loss rules. I am not aware of any such exclusion for employee share purchase plan. Interesting article below. It discusses share purchase plans near the end of the article.

How superficial loss rules affect employee plans | CI Global Asset Management (cifinancial.com)

And clients wonder why I charge more for people with investments…

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3

Thank you SO MUCH! That completely answered my question on how to handle this.

Great googling - I didn’t come up with this at all. Super helpful, thank you.

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