Q: If i were to sell some preferreds at a loss, could I claim the capital loss if i were to purchase another denominations of preferreds from the same issuer within the 30 days .
thank you.
thank you.
5i Research Answer:
Probably not, but it could be debatable. We are of the view that the CRA would view another preferred of the same issuer as too similar. However, we have seen some other commentary that implies if the terms of the preferreds are different it might be allowed. Of course, the CRA doesn't give such specific examples. But we would side with conservatism here and would not attempt it.