Can I sell an investment at a loss and buy it straight back?
Selling and Repurchasing: Superficial Loss Rules. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
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The direct answer
The superficial-loss rules can deny a capital loss when you or an affiliated person acquires the same or identical property within the relevant 30-day-before/30-day-after window and still owns it 30 days after the sale. Spousal and controlled-account transactions can matter. Do not review only the account in which the loss was realized.
Review activity around the sale
A sale at a loss needs to be considered with related purchases before and after it. Collect transactions across the relevant accounts and identify holdings that may be identical. Do not assess the loss from a single sale confirmation alone. Purchases by an affiliated person or through another account can be relevant, so disclose those facts for review.
Avoid treating a broker's loss as the final claim
A brokerage report may show a transaction loss without applying every rule affecting the tax return. Keep purchase history, adjusted-cost records and any automatic reinvestments available. If the planned repurchase has not occurred, ask about the consequences beforehand. Once a transaction has happened, record it accurately rather than changing dates to obtain a desired result.
What to gather before the review
- Sale and purchase confirmations around the relevant period
- Holdings across relevant personal and related accounts
- Adjusted-cost and automatic-reinvestment records
Does selling at a loss guarantee a current capital-loss deduction?
No. The superficial-loss rules and other restrictions may affect the result. Review the connected transactions and ownership facts before using the loss against gains.
Your next step
Gather purchases and sales around the loss date for your accounts and relevant affiliated holdings.
Related reading
Official sources
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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