Capital Loss on Mutual Funds & T3

[SaraLee]

Just got my T3 and 2006 was my first year of investing. I have some questions which I need help answering.

My T3 doesn't show capital loss even though I know I should have some.

I bought a few funds early on in the year which I sold rather quickly (within 40 days) at a loss. That should result in capital loss, right? Does the capital loss show on the T3 at all? I don't see a box for it. Do I have to record and calculate it myself for the future?

Can I use the capital loss for future or current year capital gain?

Thanks for looking.

[15-20_God]

That should result in capital loss, right?

yes, given that you didn't repurchase the same stock 30 days after the sale.

Does the capital loss show on the T3 at all?

no it does not.

I don't see a box for it. Do I have to record and calculate it myself for the future?

there is no box for it. you should have a summary of transactions that would record the purchase/sale. its up to you to calculate the gain/loss.

Can I use the capital loss for future or current year capital gain?

a capital loss can be applied to any current capital gains or carried forward.

[SaraLee]

Thanks 15-20 for the quick answers. More questions...

How accurate does my calculation have to be?

How long can I carry capital loss forward?

Do I have to include or exclude early redemption fees / commission fees?

Thanks.

[don242]

Thanks 15-20 for the quick answers. More questions...

How accurate does my calculation have to be?

How long can I carry capital loss forward?

Do I have to include or exclude early redemption fees / commission fees?

Thanks.

Your calculation should be accurate. You should have records of your transactions.

Report all your transactions in your tax return, including those you took a loss on. Those will be noted for future years and will be shown on your notice of assessment.

If you fill out your tax return (schedule 3), it will show you where to put in your fees. Indicate your proceeds (gain/loss) and indicate the fees, then subtract for your total gain/loss.

[pitz]

a capital loss can be applied to any current capital gains or carried forward.

Further to that, capital losses can be carried back, and previous years' returns retroactively amended, up to 5 years back, I believe.

[controlyar]

Further to that, capital losses can be carried back, and previous years' returns retroactively amended, up to 5 years back, I believe.

It's 3 years.

You hear about Barclay's 3 new ETF's? I bet you are a happy man today. :lol:

[pitz]

It's 3 years.

You hear about Barclay's 3 new ETF's? I bet you are a happy man today. :lol:

Interesting. The Russell 2000 one isn't even interesting since I can do my own currency hedging. And its well understood out there that active management is usually better than passive management for small cap exposure.

The social index one is interesting though. Indicies such as the Dow Jones Sustainability Index have outperformed the market fairly consistently. A worry with this product is that it might have a relatively short shelf life. Whereas with XIU, I am fairly confident that 20 years from now, it will still exist (XIU has been around, in some form or another, since the early 1990s, when it started out as TIPS, Index Partipation Units, against a small basket of large cap stocks on the Toronto Stock Exchange).

[controlyar]

Interesting. The Russell 2000 one isn't even interesting since I can do my own currency hedging. And its well understood out there that active management is usually better than passive management for small cap exposure.

The social index one is interesting though. Indicies such as the Dow Jones Sustainability Index have outperformed the market fairly consistently. A worry with this product is that it might have a relatively short shelf life. Whereas with XIU, I am fairly confident that 20 years from now, it will still exist (XIU has been around, in some form or another, since the early 1990s, when it started out as TIPS, Index Partipation Units, against a small basket of large cap stocks on the Toronto Stock Exchange).

The social index one I do find intriguing. Many investors seem to be fairly passionate about not investing their hard-earned money into foreign and/or companies of questionable nature. So I imagine it will be fairly popular among advisors. I personally have no qualms against investing in any company as long as I see the double digit returns. :cheesygri