Q: Hi, We have above banks with some losses in our portfolio and overall large capital gains already booked, from other stocks. In absence of any other Tax Loss candidates, Would you be fine selling Canadian Banks to book a Capital Loss, for 2023 and buy back after 30 days ? If so, would it be prudent to initiate the Sell, now and buy back after results, Or, sell after results and Buy back in January, 2024 ? Thank You
5i Research Answer:
As a 'predictive' question, or course this could go either way. We would be fine with crystallizing losses and re-buying overall. We don't like making moves based on one quarter's results. We are not particularly concerned with the quarter, but at the same time hardly expect blow-out numbers either. The main risk we think is a December market rally. With the 30 day tax window, both banks will have reported earnings already before one could rebuy and still claim the loss, so that question is moot. But we would be fine buying back THIS year, after the 30 day window. This strategy would capture the next dividend on both as well.