Capital loss write off question.

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Seamus
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Joined: Thu Jan 20, 2011 9:21 pm

Capital loss write off question.

Post by Seamus »

I am an American living and working in Canada. I am about to sell a commercial building in the U.S. and it's going to sell at a $20,000 loss. Can I write this loss off on my Canadian taxes and if so, how much per year?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You can only write off cap losses against cap gains, either 3 years back or anytime in future.

Since the write off in US will save you no tax, best to keep the loss until you can match it with Cdn gains. In any event it is not going to be much use until you have some gains.

btw, if this property was owned before coming to canada, your cap gain/loss calculation for Cdn purposes is NOT thesame as for US, since your property was deemed to have been sold and bought on the day you moved to canada, so keep that in mind as well.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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