Q: Hello Peter and team,
I took some profits along the way in 2014 in a non-registered account and now I am wondering which of my losing stocks I should sell to offset the capital gains. The “losers” to choose from are:
RUS, <1% of portfolio, down 15%, capital loss would be 10% of total capital gain
XSR, <1% of portfolio, down 35%, capital loss would be 23% of total capital gain
AVO, 2.1% of portfolio, down 14%, capital loss would be 20% of total capital gain
TOU, 2.5% of portfolio, down 18%, capital loss would be 33% of total capital gain
D.UN, 4.1% of portfolio, down 11%, capital loss would be 27% of total capital gain
CPG, 5.4% of portfolio, down 5%, capital loss would be 16.6% of total capital gain
When I say the “capital loss would be 10% of total capital gain”, I mean that if I sold all the shares the capital loss generated would offset 10% of the total capital gain I have to declare in 2014.
If I sold RUS and XSR that only contributes a third to the capital loss I need to create. I am willing to wait it out for AVO. I like the dividend on CPG and D.UN. I don’t really want to sell TOU at this time, but I may not have a choice if I want to offset all the capital gains.
What should I sell? Should I suck it up and just pay some or all of the income tax when I file my tax return in April (I would be in the top tax bracket)?
Paul J.
I took some profits along the way in 2014 in a non-registered account and now I am wondering which of my losing stocks I should sell to offset the capital gains. The “losers” to choose from are:
RUS, <1% of portfolio, down 15%, capital loss would be 10% of total capital gain
XSR, <1% of portfolio, down 35%, capital loss would be 23% of total capital gain
AVO, 2.1% of portfolio, down 14%, capital loss would be 20% of total capital gain
TOU, 2.5% of portfolio, down 18%, capital loss would be 33% of total capital gain
D.UN, 4.1% of portfolio, down 11%, capital loss would be 27% of total capital gain
CPG, 5.4% of portfolio, down 5%, capital loss would be 16.6% of total capital gain
When I say the “capital loss would be 10% of total capital gain”, I mean that if I sold all the shares the capital loss generated would offset 10% of the total capital gain I have to declare in 2014.
If I sold RUS and XSR that only contributes a third to the capital loss I need to create. I am willing to wait it out for AVO. I like the dividend on CPG and D.UN. I don’t really want to sell TOU at this time, but I may not have a choice if I want to offset all the capital gains.
What should I sell? Should I suck it up and just pay some or all of the income tax when I file my tax return in April (I would be in the top tax bracket)?
Paul J.