how to report a capital loss?

[Canucksrulez]

Hi guys, i have a question concerning about capital loss. I bought 1000 shares at $2 so it's $2000 worth of stocks. Now, the stock has lost 99.99% of the value. I think it's around 0.01cent/share. I don't think i can even sell it for a capital loss through ScotiaMcleod brokerage. Any suggestions/advices as to how can i claim this as a Capital Loss? Thanks in advance.

[ghostryder]

You don't have a capital loss until you actually sell. The only exception to this is if you qualify under Sec. 50(1) to elect to have a deemed disposition.

[boyoflondon]

As the above poster mentioned ... you have not "lost" until you've sold ...


But damn ... talk about being raped! I would've started panicking as soon as that thing dipped bellow a buck ... You seriously like to gamble if you let it ride to $0.01 :D

[Canucksrulez]

Yeah that was inexperience on my part. Checked again the price of share is 0 which makes it untradable. How in the world can I claim capital lost if I can't even sell. Helps

[Nutchos]

I guess just wait for the company to get delisted or go bankrupt. Once it's gone you could declare the loss. Remember though: you need to have had capital gains somewhere to be able to use the loss.

[fch]

I am in a similar situation as well.

I have stocks that I cannot sell as they are not traded on TSX anymore. They stopped trading since 2002. How can I claim Captial loss?

If I do not have captial gain to claim against, for how many years I can carry forward the loss forward to write off against future captial gain.

[grant]

Talk to your accountant or call the CRA to ask if you have to do anything to claim the capital loss on these securities.

You can carry capital losses forward forever, and back 3 tax years. i.e. a loss declared in 2009 can be used against capital gains for any return 2006 and later.

[ghostryder]

Yeah that was inexperience on my part. Checked again the price of share is 0 which makes it untradable. How in the world can I claim capital lost if I can't even sell. Helps


I am in a similar situation as well.

I have stocks that I cannot sell as they are not traded on TSX anymore. They stopped trading since 2002. How can I claim Captial loss?



Talk to your accountant or call the CRA to ask if you have to do anything to claim the capital loss on these securities.


As I mentioned already, if you meet the requirements of Sec. 50(1) of the ITA you can elect to have a deemed disposition at nil value. This crystalizes your capital loss. It also resets your ACB to zero, so if you do ever sell the shares for some value, you will have a capital gain.


I guess just wait for the company to get delisted or go bankrupt. Once it's gone you could declare the loss.

Delisting does not meet the requirements of Sec. 50(1). Just because a stock has been delisted does not mean it has no value.