The last year and a half was a rough year for investors and
businesses alike, as the markets and economy were on a downward
spiral due to the pandemic and other global factors. So, chances
are that your portfolio or financial statements might be reflecting
some losses. But triggering losses does not necessarily mean that
your pocketbook is lighter since any losses that you realize can
help offset your 2021 tax bill.
Capital Losses
You have a capital loss when you sell, or are considered to have
sold, a capital property for less than its adjusted cost base plus
the outlays and expenses involved in selling the property. For tax
purposes, a capital loss can only be used to offset against a
capital gain (when you sell a capital property for more than its
adjusted cost base plus outlays and expenses). But there are some
key rules to keep in mind:
