Harvesting Tax Losses: A Maple Syrup Guide to Non-Registered Accounts

Sweeten your portfolio returns by turning losses into a tax-saving delight—no apron required.

Tax-loss harvesting sounds as Canadian as deep-fried butter—but it’s actually a golden tap of maple syrup for your non-registered accounts. With a dash of strategy and a sprinkle of paperwork, you can bottle gains even in down markets.

1. Spotting the Wilted Maple: Recognizing Losses

• Identify underperforming stocks or ETFs.

• Compare current cost base vs. market price.

• Dad joke: “Why don’t stockbrokers go skinny-dipping? Too many liquid assets.”

2. The Sweet Swap: Replacing for Compliance

• Sell the loser, wait 30 days, rebuy a similar (but not “substantially identical”) ETF.

• Example: swap XIC for VCN to stay invested in Canadian equities.

• Keep the portfolio’s taste profile consistent; nobody likes surprise flavors.

3. Claiming Your Syrup: Filling Out the T-form

• Fill Schedule 3 of your T1 General.

• Report the capital loss; carry it back three years or forward indefinitely.

• Pro tip: use tax software that speaks both English and “CRA.”

4. Timing Your Pour

• Harvest losses late in the calendar year to offset gains.

• Watch for 30-day rules around buying back.

• Dad joke: “I sold my loss-making stocks in winter—just to keep the 30-day waiting period frosty.”

5. Risks and Sap-tfalls

• Beware “superficial loss” rules.

• Keep records of trades, dates, and tickers.

• Regularly review; a sweet deal can turn sour.

Conclusion

Tax-loss harvesting in non-registered accounts is the maple syrup of portfolio management: sticky at first glance, but ultimately sweet. With careful swaps, proper timing, and a sprinkle of paperwork, you’ll extract extra after-tax returns, pour over your wealth, and enjoy the taste of financial success.