2022 has been a tough year for equity markets, and as the year comes to a close, some may wonder if there’s a tax planning silver lining. The answer? It depends. For corporate investment accounts the general tax planning rules do not apply.
Crowe MacKay's tax advisors review tax-loss selling for corporate investment accounts and how its impact can be beneficial or detrimental depending on your organization’s situation. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
Tax-loss selling, sometimes referred to as tax-loss harvesting, is a tax planning strategy. The strategy involves selling investments with accrued losses to offset realized capital gains, ultimately reducing taxes owed at year-end. The current year capital losses are first applied to reduce any gains in the year. Excess capital losses can be carried back to any of the three preceding years or carried forward indefinitely.