Claiming net loss on shares of a dissolved company- few questions

[rinny]

I'm in need of some reasonably tax-savvy input regarding some shares that I hold, in which the company was dissolved early this year therefore the shares are worth $0.00.

What I need to know:

- Can I claim this as a net loss in my income?

- If I can, is it a net loss in the year that I bought the shares, or signed the form to release the shares from my account?

How does this work out now?

[whodiman]

you can claim as a capital loss in the year it went under. but you need capital gains to claim against. You cannot just deduct from your regular income. however capital losses can be carried back 3 or carry forwarded 7 (i think that's what it was last time i checked).

[rinny]

When you say "the year it went under", you're talking when the company dissolved, correct?

So you are saying that it would NOT be a capital loss in the year that I complete and submit this form to my broker:

Deed of gift:
http://www.scotiabank.com/images/en/...onal/19128.pdf

[rinny]

And also, would you know of any online government tax literature that would state what you are saying?

[DJ_NAV]

cra.gc.ca ??

[quazimoto]

Essentially it works like this.

You can claim a net capital loss this year but the loss can not be applied to capital gains in the same year only previous years. They don't let you use the capital loss against capital gains in the same year. So you could claim the loss this year and still put it against previous years taxes just not the current year.

[rinny]

Are you saying that I could hold on to these non-value shares so that lets say, this year I make a large capital gains, and then next year I sign the shares over which will apply a net loss to this years income?

[quazimoto]

No no you claim the LOSS now, with your current taxes. You can carry forward the loss for upto 7 years. So essentially you could use it from now until 2016 against any capital gain you make.

Granted I'm not sure if the liberals getting in would revert some of the tax law we have either though as I do believe our capital gain/loss system was different under the liberals.

But if you claim that loss now you can apply it to any of your 3 previous tax returns or returns made in the future just not on the current tax return.