For tax-loss purposes in Canada (including trades on the Toronto Stock Exchange — TSX), the key deadline in 2025 is based on the settlement date of the trade, not the trade date itself.
?? Last Day to Qualify for 2025 Tax Losses - Because Canadian securities settle on a T+1 basis (trade date + 1 business day), the last day you can trade on the TSX to have the transaction settle in 2025 is Tuesday, December 30, 2025. scotiawealthmanagement.com+1
- You must execute your sale on or before Dec. 30, 2025 for the loss to settle by Dec. 31, 2025 and thus be eligible for the 2025 tax year. Advisor.ca
?? Why This Matters - Capital losses are recognized in the year in which the settlement date occurs, not the trade date. taxtips.ca
- Because of T+1, a trade on Dec. 30 settles on Dec. 31, counting against the 2025 tax year.
- A trade on Dec. 31 would settle on Jan. 2, 2026, meaning the loss could only be claimed in 2026, not 2025. Advisor.ca
?? Other Things to Note - Watch the superficial loss rule: if you and/or an affiliated person buys back the same or an “identical property” within 30 days before or after the trade, the capital loss may be denied for tax purposes.
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